RBI has announced that it will soon launch a new digital currency called "Central Bank Digital Currencies" (CBDC) in India.
All other paper applications in the modern financial system, whether they are bonds, transactions, communications, letters, or messaging - have now been replaced by their associated digital and electronic versions. The use of money in transactions has also been declining in recent years, further reinforced by the current COVID 19 epidemic. These developments have been fiat by many central banks and governments.
They have stepped up efforts to explore the digital version of the currency and providing virtual currencies to the public is a key goal. In the modern economy, the currency is exclusively issued by sovereignty (or as a central bank as its representative). The responsibility and holding of the Central Bank (and sovereignty) which provides this is the property of the public. The coin is generally issued in paper (or polymer) form, but the shape of the coin is not defined by its characteristics.
CPC is a legal currency issued by the central bank in digital form. It's like a fiat coin and its shape is only different. THE CPC is a digital or virtual currency. Even the CPC may be at risk of cyberattacks, just as the dangers are exposed to current payment methods. Moreover, in countries with low financial literacy levels, the rise in digital payment-related frauds could also spread to CBTCs. It is essential to ensure parallel efforts related to cybersecurity and financial literacy for any country dealing with the CPC.
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