HASTI PUBLIC SCHOOL & JR.COLLEGE DONDAICHA
BLOG NUMBER 173
Our Hasti Public school has taken lead in educating children and parents as well and there are plans ready to introduce Financial Literecy at different levels*. This is to make children ready for the future high tech financial world around them. Crypto education is the Need of an hour
Currently, many companies are adopting blockchain and digital assets to provide a wholesome experience for their customers. However, not many people are actually aware of this new-age technology.
In a nutshell, crypto education comes with a lot of benefits; the prime reason why investing in proper crypto education is all the more important. Below is a list of some of the benefits of crypto education:
It increases one’s knowledge. A person gains more insights and becomes aware of the nitty-gritty related to cryptocurrencies.
Crypto education gives a broader perspective of the market, thus identifying the various trading options and avenues available.
Moreover, with more information at their disposal, investors can take advantage of a wider range of investment options they can choose from.
Protection against crypto-theft. Imposters and scammers exist everywhere. With in-depth knowledge, one can recognize fraudulent websites and transactions and can detect deceitful acts, and better protect oneself from theft.
Enhanced crypto trading confidence. Owing to its complexity, entering into the crypto world may be quite intimidating for newbies. However, once a person begins to educate himself and is familiar with the crypto market, his outlook on the crypto trading and investment process improves by leaps and bounds.
Hence, in order to reach mass-scale adoption, it’s necessary to spread financial literacy for crypto assets and blockchain education to understand how this technology and the overall crypto space works—and make education in this innovative and upcoming segment more accessible. Todays topic is DIGITAL RUPEE
Digital Rupee (e₹-R) may play a big role in providing a safe and reliable means of payment for direct transfer programs of government welfare programmes. .
With Digital Rupee, efficiency, lower fee requirements, faster settlement, increased transparency and lower privacy would translate to everyday lives slowly but will have both positive and negative externalities.
“CBDCs can play a big role in the government’s push to provide a safe and reliable means of payments for direct benefit transfer programs of government welfare programs. They promote inclusive and innovative payments if properly monitored, and the risks involved are overcome through effective means,” says Manish Sharma, Founding Partner of Centricity Wealth Tech.
If leveraged for government schemes, Digital Rupee would ensure no leakage and automated release of payments on the completion of certain tasks.
FREQUENTLY ASKED QUESTIONS ABOUT DIGITAL RUPEE
Will Digital Rupee be useful in retail payments?
“CBDCs can also be used for retail payments. Payment instruments could be made available for payment transactions to be made via CBDC. Retail CBDC distributed by the RBI and commercial banks would have to be held in electronic wallets/ accounts by the end users,” says Sharma.
Digital Rupee would enable payment means between the following:
Consumer to consumer
Consumer to business and
Business to business. *
Will Digital Rupee replace physical currency?
Digital Rupee will not replace physical currency. It is meant to complement physical currency.
“Digital currency advocated by the central banks is to complement and not replace the current forms of money and will provide users with an additional way of payment, with the existing payments systems still being in place. The digital rupee ideated by RBI will be generated through an advanced payment system which is affordable, accessible, convenient, efficient, safe, and secure and will further bolster,” says Rachit Chawla, CEO, Finway FSC.
Will Digital Rupee boost lending?
Instant lending to micro, small and medium enterprises (MSMEs) in India can be possible with the help of CBDC. As more MSMEs use CBDC, banks can draw up a more accurate borrower risk profile. This can be used to promptly meet MSME financing requirements. Moreover, the stimulus for MSMEs can also be disbursed quickly from the central bank. This can help businesses grow and sustain themselves during periods of uncertainty where the availability of cash is limited.
Will Digital Rupee transactions be traceable?
Digital Rupee transactions will be traceable. Experts say that CBDC’s traceability may help retail users and MSMEs prove their creditworthiness.
Will Digital Rupee be based on blockchain?
Experts say that the CBDC for retail would likely be on a Distributed Ledger Technology and not necessarily the blockchain.
“There would be a transparent overview of transactions between participants. The automation ability and instant settlement will help speed up the overall financial infrastructure on which retail payments operate.
Will Digital Rupee have private keys like cryptocurrencies?
There are some concerns about the private keys of the Digital Rupee and the risks associated with losing a private key. However, it seems likely that Digital Rupee would not be based on a self-custodial model.
Will Digital Rupee be exchangeable with cash?
Experts expect there would be fungibility of the CBDC with cash for retail. This would make it an opt-in opt-out kind of system.
Will Digital Rupee help in tax collection?
Digital Rupee may make it easy to collect taxes through smart contracts.
“There are also interesting ways for the tax to be collected through smart contracts linked to the CBDC, but there are various other developments in law, policy and education which would be required before a full retail rollout,”
The digital currency can help in evolving modified and improved Banking products and services. It can also help in prevention of frauds by effectively tracking end use of funds. The Digital Rupee has the potential of transforming the economy and Banking sector in multiple ways
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