JJEM: Special Edition 1 (December 2023)
JJEM: Special Edition 1 (December 2023)
2023-12-08
A Study on the Evolution of Digital Currency – Development and Implications
Aryan R and Anjan M S
Recent years have witnessed a global movement that is gaining momentum: the DIGITALIZATION OF CURRENCY. It involves transforming traditional currency into digital forms that is utilized for various kinds of transactions. In recent years, there has been a notable rise and transformation in India in relation to the digitalization of currency. Through lots of programs and technological advancements, the nation has been heading toward a cashless society. The digitalization of currency offers a number advantages and challenges. In order to improve financial inclusion and make it simpler for those without access to traditional banks to engage in the digital economy, governments and central banks are investigating the possibility of creating digital versions of their national currencies, known as Central Bank Digital Currencies (CBDCs). The idea of a digital Indian Rupee that is issued and controlled by the Reserve Bank of India (RBI) is being tested. This has the potential to revolutionize the nation's monetary system if implemented. The popularity of crypto currencies such as Ethereum and Bit coin has increased. Block chain technology is used by these to facilitate safe and open transactions. The Unified Payments Interface (UPI), which enables people to instantly make digital payments using smart phones and bank accounts, is one of the key steps in this approach. People can easily perform transactions using UPI without using cash. Additionally, mobile payment apps like Ponape, Google Pay, and Paytm as well as digital wallets have expanded. They provide a simple and useful means of conducting business, which makes them an essential component of Indian daily life.
Digitalization of Currency, Central Bank Digital Currencies, Digital Indian Rupee, Crypto currencies, Unified Payments Interface