Agency. Indian Finance Minister Nirmala Sitharaman has made a big announcement through the budget. She directed the central bank (RBI) to start digital currency trading in the fiscal year 2022-2023 through her budget speech.

The RBI is working for this. The government is confident that this will prove to be a revolutionary step in the field of digital economy. But what is this digital currency? How will it be used? There are many questions in the minds of common people about this.

The full name of the digital currency is Central Bank Digital Currency. It is issued by the Reserve Bank of India. It is recognized by the government. It is also included in the central bank's balance sheet.

Its specialty is that it can be converted into the sovereign currency of the country. In the case of India, it can be called a digital currency. There are two types of digital currency. Retail digital currency is used by the general public and companies, while wholesale currency is used by financial institutions.

It is less expensive. Transactions can also be fast. The government is preparing to make digital currency public as the cost of printing notes and transaction costs is higher than that of digital currency. Digital rupee tracking is possible. Which is not possible in cash. How much and when to issue digital rupee will be in the hands of the Reserve Bank. It will be easy to measure how much money is in the market.