The Reserve Bank of India has been working forward towards proposing its own digital legitimate tender that has been approved by the state. This effort has not been taken for the very first time, in the past to RBI had made bold statements about putting out their own cryptocurrency. None of it was put up into motion and was not said was substantial enough except only a few of the statements made by the top principal executives.
Cryptocurrency is generally described as more of a private currency in comparison to the regular currencies that have been in circulation which are even sponsored by sovereign warrants. In the case of sovereign bonds, one does not bear any guarantee as in the case of regular currency such as a Rs 100 note the Reserve Bank of India promises a guarantee that the worth of that paper notes is Rs 100. Rather than being backed by any sovereign warranty, it is backed up by composite programming which is guarded and cannot be changed by individuals and can accommodate multiple checks and balances in regard to its merit.
The Reserve Bank of India will have its own digital currency which will, in turn, be backed up by the Reserve Bank of India and will take the ideology of simply converting a hare into a total digitalized format that will account for no currency bills. However, this statement is just only issued in the public domain and yet under evaluation for further proceeding. In regard to this Reserve Bank of India is not the first central bank to introduce its own digital currency as China has been working on its own digital currency for years and India is falling far behind as compared to many of the other economic geography.