Digital Currency: Prospects And Challenges

Abstract

The barter system is a long-established method of trading goods and services. Despite Amsterdam's rise to become Europe's largest and wealthiest city, the Amsterdamsche Wisselbank (Amsterdam Bank) pioneered the banking idea in 1609. Online banking, often known as net banking or online banking, is a payment system that allows bank or financial institution clients to make financial and non-financial transactions through the internet. A wallet, often known as a mobile wallet or a wallet, is a gadget that allows you to save money on your phone in digital form. Digital money exists only in digital form and has no physical properties. Computers or electronic wallets linked to the Internet or specific networks are used to perform transactions. A Central Bank Digital Currency (CBDC) is an electronic banking system that may be used to make payments by both individuals and companies. The Reserve Bank of India has the option of launching its digital currency. Because the majority of Indians do not have bank accounts, cash must be constantly circulated. According to the author, CBDCs will require further clarification in the coming days, and much will depend on how the notion originated in India. CBDCs should not be structured in such a way that they obstruct the RBI's capacity to carry out its current responsibilities.

Keywords: Barter system, Currency, Digital Currency,  CBDC

DOI: 10.7176/JESD/13-6-03

Publication date:March 31^st 2022