India is soon going to launch its own digital currency. Finance Minister Nirmala Sitharaman, while presenting the budget for 2022, said that the Reserve Bank will issue a digital rupee in the next financial year. Stamping on this, recently the Reserve Bank of India has also talked about issuing a digital rupee. RBI said that the Digital Rupee will be the Central Bank Digital Currency (CBDC). Slowly the country is moving towards digitization. Earlier it was limited to online payment only, but now the talk of digital currency is also going on. However, there are many people who are unaware of digital currency. So let's know about it in detail.

Let us know what is digital currency and 5 important things about it.

What is digital currency??

Digital currency is a form of currency that is available only in digital or electronic form. It is also called digital money, electronic money, electronic currency or cyber cash.

There are 3 types of digital currency
1. Cryptocurrency:- It is a digital currency that uses cryptography to secure transactions in the network. It is not controlled by the government of any country. Bitcoin and Ethereum are examples of this.

2.Virtual Currency: Virtual currency is an unregulated digital currency controlled by an organization consisting of developers or various stakeholders involved in the process.

3. Central Bank Digital Currency (CBDC): Central Bank Digital Currency is issued by the Central Bank of a country. RBI has said to issue this currency only.

So let's know the main things of digital currency:
Transactions involving digital currency are done using computers or internet or electronic wallets.
Digital currency is usually present within the same network and the bank does not act as middleman between them, hence it has faster transactions.
There are many requirements for physical currency, such as the use of resources and expenses in its creation. There is no such requirement in digital currency. This is cheap.
Digital currency makes transaction costs cheaper.