The making of digital rupee: A deep dive into RBI's concept note

Establishing a CBDC issuance may come with significant fixed infrastructure costs, but subsequent marginal operating costs are likely to be very low

Central banks across the globe are exploring the possibility of issuing digital currency. The motivations for such an initiative vary from one country to another depending on their priorities. Business Standard takes a deep dive into the RBI's concept note, which promises "easier, faster, and cheaper” digital currency or digital rupee.

Some features of CBDCs*

• A sovereign currency issued by central banks in alignment with their monetary policy
• Appears as a liability on the central bank’s balance sheet

Must be accepted
 

i) as a medium of payment

ii) as a legal tender

iii) as a safe store of value by all citizens, enterprises, and government agencies

• Freely