With technological advancements touching their peak in the 21st Century and plans to make physical transaction and exchange of monetary transactions an obsolete event, Digital Currency which is known as Cryptocurrency. Earlier for completion of monetary transactions, you were required to visit the physical location and hand out the cash amount to the entity from whom you had purchased the product or availed the service. The concept of the physical transfer of money underwent a significant change with the advancement of technological measures. Thereby incorporation of digital payment mechanisms like Unified Payment Interface was introduced. However, the reason behind rolling out digital currency was the incessant number of monetary and banking frauds that were taking place in the country.
In 2019-20, Banking and Monetary Frauds in the country grew 159% from the values reported in the previous year with a total monetary increase of 1.85 trillion. Banking Experts all around the country have necessitated the importance of digital currency in the form of Central Bank Digital Currency (CBDC). They have informed that the Reserve Bank of India has released close to 20 million notes through the notary exchange authorities and they are circulating in the market as visible currency figures. However, the chances of counterfeit currency regulation become optimum as it is very difficult to track and analyse the source of the monetary transaction.
Therefore the existence of the banking authorities slowly moved towards complete nullification with digital money transactions occupying a central position. Central Bank Digital Currency authorities have been instituted to formulate the banking transactions by the private commercial authorities. However, according to the other half of the industry experts on digital currency regulation, the problem remains partially as converting the currency amount to cash and hiding it in accounting terms is very easy. That is where CBDC comes into play as all the digital transactions are to be maintained in a ledger thereby record being maintained.
Digital Currency is therefore going to revolutionize monetary transactions forever.