Explainer: What is Digital Rupee (e-RUPI)? And is it better than UPI?
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- Опубликовано: 12 сен 2024
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e-RUPI has launched - India's DIGITAL CURRENCY!
Some questions that I have answered in this video:
1. What is Digital Currency?
2. How is it different from Normal money?
3. Isn't it just like UPI?
4. How will CBDC benefit the economy?
And very importantly,
5. What are the MAJOR RISKS of this central digital currency?
Do watch this video till the end to have a holistic understanding:)
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Attributions:
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Hello Sir
I have 6 lakhs to invest in crypto
What is EX CHILD?
Helpful!
Hi Akshat, I wanted to join the members paid channel. How can I go about doing that ? Also I wanted to know a little more about the put hase of a villa in Goa. Would appreciate if you could help me out with the same!
One benefit of CBDC could be to tag the currency with government welfare schemes and let that tagged currency be used only for the earmarked scheme. This way govt can prevent abuse of money allocated through such schemes.
For ex: Rs100 that is given by govt to a poor citizen to buy ration from PDS shop will be used only for that purpose and the citizen can be restricted to not use that currency for any other purpose.
Thatz wat i was about to write...i beleive it isn't to counter UPI or taking power away from banks...it is for the govts schemes to be more efficient and effective...
Let's wait to see how it unfolds
New week up as many FOMO in. But the AWN27T story isn’t over yet. The only strat that works under all circumstances is DCA all the time with solid, large companies (not hyped ones).
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Woah 1.4k likes within minutes, these bots are getting out of hand.
Your Dad
@@SINGH_RAJAT I got a genuine comment after 7 of these
Oh god..... scams are all where...
I think you are grand child of Jeff Bezos....
@@MRSMITHIK haha I know
The main advantage as I understand is adding smart contracts to CBDC which prevents the misuse of subsidies/crop loans etc., For example, bank offers crop loan/AG Loan to farmers at a subsidized interest rate and this is getting credited to bank account or given in cash , this is being utilised in a wrong way i.e instead of using that money for agriculture purpose , they are using this for purchasing luxury items or childs education etc., i.e using it for anything other than agriculture (in most cases). So if smart contracts are introduced to CBDC this can be prevented. using smart contracts it can be programmed in such a way that it can be utilised for purchasing only to which its intended for . Please feel free to correct me incase of my above understanding is incorrect.
I also feel the same, it can reduce corruption and missuse of money
Totally agree with you, with the UPI this thing is not possible but with the CBDC it is possible.
Bro iske liye smart contract ki zarurat nahi hai, Directly aise vouchers bhejo, jo sirf agricultural chizo ke liye redeem honge, jaise ki Kisi perticular brand ka koi voucher ya coupon apne lete hai to koi perticular chizo ke liye hi redeem hoti hai. Smart Contract ka concept pura alag hota hai. Aur CryptoCurrency aur block chain ka main motive to De-centralised, Distributed ledger wala hi tha so Digital Rupee ka koi sense weise bhi nahi banta. Distributed Blockchain ka ek benefit hai ki Chhed chhad nahi kar sakta koi bhi kyunki agar ek bhi transaction ke sath chhed chaad kiya to puri Blockchain invalid ho jayegi aur Saare blocks ko firse Mine karne me bhot jyada energy aur computing power lagta hai. Jab ki present me to Banks apni ledger ko khudse control kar sakti hai kuchh bhi uper niche karke. So Block Chain ki technology achhi hai, aur agar Digital rupee block chain pe based hoa fir bhi Banks koi koi dikkat nahi hogi, Ek main Blockchain hogi RBI ki, aur baaki banks ki Side-Chain hogi.
Lekin inke(creator) ke Loan wale point se me disagree karta hun, Human apne hisab se koi decision le sakta hai, Hard Coded Smart contract nahi le sakta, so Loan wala system smart contract pe based hoga to Jyada achh hoga, perticular Address pe kitne transactions hue hai, kitni income hai wo sab data smart contract block chain se read karega. Aur Smart Contract ke kuchh specific conditions honge ki itni itni conditions met ho rhi hai to hi loan milega, to kisi jhantu ko loan mil jaaye possible hi nahi hai.
There is also a lot leaking when central government gives money to state government for such and such infrastructural projects then they are used for other purposes this will help the central government to track all that
Hi Akshat, one thing I can think of is international trade. As of now, it is extremely complicated with nostro Vostro accounts and multiple banks. Instead, if we use CBDC of let us say US and India to do trade, we can cut out a lot of these middlemen. The central bank of each country is known to the central bank of every other country and hence the transactions have authority. Plus it will be faster, cheaper and more secure. We can also have DCs for different trading groups, like BRICS, ASEAN, QUAD etc. with weights for individual CBDCs and seamless conversion. Is it possible or just a pipe dream?
Good point bro
But then it must be decentralised, available for everyone.
@@vivekvadoliya9647 No, it need not be. Decentralisation is to prevent any entity having full control of the currency. It will surely lead to speculation and cannot remain equivalent to some other centralised currency. All CBDCs will have 1:1 convertibility with that nation's currency. Only makes sense for the entity controlling the real currency to control CBDC also. My point was to eliminate all the intermediate banks that comes in when we are doing an international transaction. With CBDC, as the account is maintained by central bank, we can directly convert the CBDC of our country to the CBDC of required country very easily. For a bundled DC like say BRICS currency, may be the NDB can act as the regulating entity. It will be like debiting CBDC (Rupees) in our wallet and crediting the CBDC(Dollar) wallet at the destination. The communication will be between central banks so less delay, more trust and more transparency.
How do you know about this stuff bro, r u into finance or really rich?
@@wealthmaster69 Not rich. CBDC is a theory taught in Banking and Finance for a long time. In another life, I worked in SBI. One of the biggest money makers for a bank like SBI is its Treasury and Forex business. I hate it because international finance is intentionally complicated by these banks so that they can increase their fees. Someone who wants to travel for business or pleasure should never have to pay so much money for converting currency. CBDC solves all these international transaction issues provided every country has its own digital currency and their payment systems support them.
You have to question the government, why eRupee when UPI is already there...?
The programmability feature allows the government to control the use of money. We MUST NOT allow the government to give money as well as programmatically control if we can use it and how we use it and where we use it . This is very very dangerous.
Protect your privacy and freedom of using money. The Constitution should be changed so future governments do not misuse CBDC.
Thanks Akshay for touching and making us literate on topics which I think nobody covers. Your way of explaining things is great and best line is " to cut the long story in short" 😀..... Great work... Keep it up...
I kind of realized that there will be no benefits the moment they said it will be centralized. You confirmed it!
Main purpose of CBDC is to create an Internationally tradable currency without using any of the current payment networks like Swift, which are controlled by West. In an eventual case of sanctions as in case of Russia where Swift payments were blocked disrupting trade this would help.
So in case CBDC is successful we would have a mechanism in place to trade globally without much disruption.
Second reason is INR is highly dependent on USD and hence is volatile. If trade happens in INR, importers & exporters need not worry of Currency risk. Making INR more stable, creating lot value for business in the long run.
HI Akshat - I don’t think RBI CBDC is directly managed and issued by RBI. This is done through intermediary banks. You can read the RBI circular on 29 Nov.
Agree that there are no major advantages seen from a retail perspective. Thanks for simplifying the concept of CBDC
You are right. Just googled that.
Yes, they are introducing through two ways.
1) direct route where RBI will issue and manage CBDC.
2) Indirect route via intermediaries (banks)
Its not abt who issues the CBDC bt abt the centralization of the monetary system
Boys is it best to invest in AWN27T monthly or weekly? I'm thinking the fees will be higher if done weekly.
A benefit is that maintaining UPI is costly and govt has to pay the banks for transactions, CBDC will be a direct transfer so the maintaining cost will be very low
One of the main advantages of this new distributed ledger is it will not leave any scope for physical intentional tampering of the subledgers held by the banks which eventually leads to an incomplete main ledger visible to the RBI.
This new ledger isn't distributed at all. Its entirely centralised
Erupi is also instrument to send money but it is different than upi as in upi you send money directly from bank 2 bank by same person .
In erupi one person can create voucher and give to some one else so they can use that voucher wherever it is decided by person who created it .
It is exactly like amazon shopping voucher where someone can create voucher by paying amazon some money and give it to anyone to shop on Amazon only.
In case of erupi usage is not limited to shopping but it can be used many places .Currently not much details is available but as per my knowledge this will be game changer as it will reduce misuse of money both in government and corporate.
Government now can create erupi and give it to farmer to buy only seeds in the form of seed subsidy instead of giving money to farmer account( DBT) where it is not gurantee whether farmer will buy seed or something else.
Corporate now can issue erupi voucher to there employee for there outstation visits for hotel access and travel expense instead of forcing employee to submit proof of expense
Health insurance company can simply go away with cashless card instead they can issue erupi to there customer which can only be used in designated hospital which will save there Hugh money.
It's usage can be many in future we will just see this to happen.
Once the adoption rate goes up , cash economy will vanish over long term.
Why do you not see these benefits from cbdc? Rgs. Drdurgadoss. Drdd
Excellent content. I used the last dip to stock up, buying AWN27T now its cheap, can't miss the presale.
1.Easy money transfer between countries in bilateral trades
2.BRICS is working on a currency to counter USD domination in market and it is said that this currency will be a digital currency backed by gold or even commodities because recently Saudi wants to join the BRICS
3. So according to me the use of this type of currency is more on the international trade rather than domestic
One advantage I can think of when compared to UPI is, eRupee can be completely free without any transaction charges. Even though currently all UPI transactions are free, they can be chargeable in future if the intermediate banks cannot afford for free transactions any longer
If RBI (aka the govt) is the controlling authority, it can make eRupee transaction chargeable as well. Might as well put GST on it
After fully implementing the E-RUPI in india, my guess is that the government will initiate charges for UPI as it is currently running in loss. Because intermediary charges are high. People will come to e-RUPI like UPI for free transaction cost as it does not need an intermediary for transacting. RBI will mange the transaction cost to zero.
My feeling is that the government wants to reach 1 billion (10 crore) UPI transactions per day so the charges are minimized by spreading it more widely. Currently, UPI is about a 1/4 of the way there with ~2.4 crore transactions per day.
I've noticed PhonePe already started charging a nominal fee for credit card transactions using UPI.
Hi Akshat, my knowledge of CBDC is all from this video, but here's the benefit I see:
Since this system skips the layer of private banks during transactions, this will bring enormous transparency and accountability on transactions.
Think about the following:
- Tax transparency
- Debt / Loan transparency
- International transactions accountability (funding of terror and / or black money)
Also, since CBDC is a blockchain network (centralised, but anyway) it can also make eRupi an alternative for blockchain applications / businesses to use instead of Bitcoin and Ethereum. Although, Polygon or other blockchains might be a better choice at the moment, but it's the first initiative by Govt in the blockchain space and with time it might actually evolve into a viable option.
It mostly benefits the government, but I don't consider the "janta" to be separate from the government. I don't think this a zero sum game between government and the masses.
Again I am not sure about how it works and if these benefits will ever occur, but this is what I can see right now
📩ꜱᴇɴᴅ ᴍᴇ ᴀ ᴅɪʀᴇᴄᴛ ᴍᴇꜱꜱᴀɢᴇ ʀɪɢʜᴛ ᴀᴡᴀʏ
㊉①④⑦⓪⑥①⓪②⑦⑧③❤
Thanks for the wonderful explanation and technical things explained in simple way...I think this might reduce inflation ..increase PPP...reduce trade deficit...but flip side would be more control on Govt,security concerns and social unrest...
❤ᴛʜᴀɴᴋꜱ Ŧᴏʀ ᴡᴀᴛᴄʜɪɴɢ👍
ꜱᴇɴᴅ ᴀ ᴍᴇꜱꜱᴀɢᴇ ᴏɴ✍️
ᴡʜᴀᴛꜱᴀᴘᴘ…✙𝟏𝟒𝟕𝟎𝟔𝟏𝟎𝟐𝟕𝟖𝟑.
There is still cost involved in printing currencies and this is maintained in physical vaults of RBI or the other Banks. So it is not true when you say that bulk of the currencies are digital. Only the means of transactions are digital. Every rupee that is transacted through UPI has a physical currency locked up somewhere in the vault. Hence not sure if your point countering operational cost is valid. Happy to be corrected.
One of the advantages is that there are no middle man needed ( eg swift ). Peer to peer payment can be done and done in real-time. That is why cost would be less. Now if cost could be lowered then good better exchange rates could be given for such transaction. It would also be ready to use it for currency swaps in future between countries. US is already worried about there currency for the Chinese and moving to digital dollars. India wants to think in those lines.Advantage within india would be it would be highly efficient banking system especially recon. Going forwards a bank like HDFC could launch its own equalant of Visa credit cards.
Soon the govt. could create a use case for digital land transactions once the tech. Is in place linking backing and real estate not only for payments but for non tampered documents on blockchain too.
the only advantage of CBDC might be 'cross border payments' but it will require standardized payment interface among different CBDCs of different countries.
This might make the cross-border money transfer process fast and less costly (lesser fee). But this implementation will take time as most of the countries are not ready with their CBDCs and such standardized payment interface is not even in design phase.
I think this is the biggest hurdle
The inflation is real We are far very from the bottom, But we also need to talk about Amazons AWN27T as a gamechanger where we can avoid most of the losses. This is not a joke guys, this is the only chance this year gives!
What will be the effect of CBDC on real estate prices in the long term.
thank you, very informational, thank you bro
❤ᴛʜᴀɴᴋꜱ Ŧᴏʀ ᴡᴀᴛᴄʜɪɴɢ👍
ꜱᴇɴᴅ ᴀ ᴍᴇꜱꜱᴀɢᴇ ᴏɴ✍️
ᴡʜᴀᴛꜱᴀᴘᴘ…✙𝟏𝟒𝟕𝟎𝟔𝟏𝟎𝟐𝟕𝟖𝟑.
You forgot to mention some points
1. Cbdc will be a substitute to swift network and others. Like in 2016 usa banned iran from selling oil... india could not use any payment channel to trade..so it has to abide to usa terms.
2. It will benifit atmarnirbhar bharat by linking with upi as it is free and there is no fee on any transactions unlike in usa and other capitalistic countries.
3. In near future we may even see atm getting obsolete as maintaining physical cash is a burden to government..so all my get digital.
4. As the e-rupi is backed by rbi as legal tender.. so in any fraud cause.. when someone swipe away ur funds..there is less chance u vll get it back...as today banks dont take responsibilities for any cybercrime... this will make rbi liable to give compensation to citizens.
Overall its a smart move by rbi to bring such remarkable instruement .
Great video, Akshat.
My two cents... 1. RBI Concept Note on CBDC does outline the challenges that you highlighted, so clearly the govt. has deliberated on the risks and challenges, esp, related to the intermediation on the role of banks vis-a-vis credit.... and 2. The pilot has just been launched, which would hopefully help identify these and also flush out the inefficiencies. Mr. Rajan is a wise man, but the collective wisdom of the current govt is equally good.
Keep making such videos, as it's always nice to hear your point of view. Cheers!
The UPI system came in during the tenure of the wise man you pointed out. It is the single most innovative endeavour that any of our institutions have put forward. After he left, the Govt. went ahead with demonetization and botched it. Went ahead with GST and botched it. The asset quality of PSU banks continued to deteriorate till even SBI posted loss. Huge scams came to light with the culprits still roaming free. Farm laws were implemented and repealed when next elections came. RBI missed inflation target multiple times. So no, I don't implicitly trust the Govt. or its wisdom as none of the politicians are wise. They are crooked survivalists with extremely twisted intelligence but they are not wise. I will trust the wisdom of a proven wise man rather than support the govt's ass when they launch a new policy. I will support them once they execute it well.
Please research who gave the culprits money and when. Regarding e-Rupi, It may not be a “requirement” right now, but the early adoption and capability building definitely will make India better placed to exploit disruptive capabilities of the technology when they come to the fore. It is infact a welcome deviation from the usual Indian laggard policymaking of past 70 years.
Lol
Hiii akshat I would like to know more clearly thou u did manage to cover up almost all bullet points however if there are more disadvantages then positive changes of cbs then wts the whole point of govt wanting to introduce to mass by wasting huge masses money itself (as ur said there are more negative pls then being positive of implementing such a whole new money system be it in physical or digital format pls explain in detail in new video with regards to my query thks-keep up the gud work & I appreciate ur precious time & efforts to explain such intruige topics in very less time
The adoption of CBDC for revenue expenditure is going to help curb the wide spread corruption. By making it mandatory to make all contraual work payments through CBDC tokens only, which normally generate significant portion of black money, it would make all such transactions open for investigation. Having said that, the system must overcome the shortcoming you mentioned to make it more viable for wider usage.
The major reason is central government is subsidizing upi transaction due to multiple merchants involved as amount of upi transactions are increasing leaps and bounds it will cost lot more. There might be possiblity that in future upi transactions are charged as well like imps so CBDC could be an alternative to that plus adoption of blockchain technology which is transparent and much safe as well could be promoted.
The main motive is to replace physical cash transaction in due course of time which can better result in tax collection and avoid corruption. The govt cannot openly say this, atleast for now. But it still remains to be seen as this might take a very long time.
it cannot be fully possible to suppose that some hack attacks and like other ones or if there are internet disruption or no internet then it will become a nightmare to the public ...means no technology in this are 100% percent secure ... it will part of the mechanism to serve the flow of money like imps, UPI, neft , rtgs but cash will be there. in rural areas, nobody knows how to operate a smartphone except a few populations in today's time they are using feature phones it takes time but cash won't be stopped it will be the best medium of exchange among the public.
Happy to see someone say this. Even if you like the government and the current folks in power, remember that one day someone else will sit on that chair. This is why the best a well-intentioned gov can do is reduce its size, maximize freedoms and unleash creativity through low taxes and regulations.
❤ᴛʜᴀɴᴋꜱ Ŧᴏʀ ᴡᴀᴛᴄʜɪɴɢ👍
ꜱᴇɴᴅ ᴀ ᴍᴇꜱꜱᴀɢᴇ ᴏɴ✍️
ᴡʜᴀᴛꜱᴀᴘᴘ…✙𝟏𝟒𝟕𝟎𝟔𝟏𝟎𝟐𝟕𝟖𝟑.
thank you so much, it was really helpful.
I don't know but when the whole world is trying to adopt and create their own digital currency , it is further refined and develops the block chain technology which is further used for multiple applications...i'm not certain but RBI is always face problems to tackle inflation when RBI do operation regarding inflation curbing the commercial banks ignore or bent the guidelines, so might be possible that Rbi is concentrating more power .
Hi, great analysis on CBDC. From where I am looking at it seems like the government is trying to eliminate physical cash from the economy. This also points to lesser instances of black cash getting stashed.
He totally failed to even introduction of retail and wholesale e₹. Because this what the turn around point of we can say the official crypto (block chain based) currency e₹ of GoI.
I n short Govt. is trying to tighten its control over people owing to popularity of crypto assets
Also comparing with China is stupid part of video..
If govt can control/ penalise your CBDC wallet. Govt can also control /freeze your normal bank account.
So hysteria around specifically e-rupi is stupid.
@@vivekvadoliya9647eRupee is nowhere comparable to popular cryptos like BTC if the ledger is centralised
I see this being used to provide Govt subsidies directly to people and reduce misuse of these money. Example, I have seen farmers take agri loans and buy cars and other luxury items. If the smart contracts are brought into action, govt/banks will put the erupi into bank account and the farmer can only use it for fertilizers, seeds/plantations, rentals for agri based vehicles and services and so on. This way we are plugging the leaks in a more polite manner. If govt takes action, then majority of the people will start protesting - hence this step. I could be wrong, but its only another way of understanding.
❤ᴛʜᴀɴᴋꜱ Ŧᴏʀ ᴡᴀᴛᴄʜɪɴɢ👍
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ᴡʜᴀᴛꜱᴀᴘᴘ…✙𝟏𝟒𝟕𝟎𝟔𝟏𝟎𝟐𝟕𝟖𝟑…
I think the main advantage is remove chunk of retail transactions as eventhough UPI is free for the customer it involves cost to maintain it.
Think of the perspective of the BANK :
Banks are maintaining 100s of small retail transactions via UPI of the total money of 5000
vs a single transaction of 5000 from the bank and rest everything via digital wallet. I hope this helps to cut the clutter.
When Upi was introduced people also questioned it but everyone knows how upi helped us grow in a better way
True
They are completely different. E-rupee purpose is good but it's basically useless due to multiple reasons.
First, RBI gave too much power and control to the banks and non-banking corporations. Now RBI wants to take that control back from the banks.
Interest to nahi milega cbdc digital currency m
From the end users perspective is there any benefit? If I want to pay someone digitally I can pay via UPI . Then what is the need of it?
The main reason for introducing CBDC is that all the BRICS nations are introducing a currency of their own which is gold backed and it’s supposed to compete with USD
CBDC can easily exchanged with this new currency easily as it is more centralised
In the short term u r right but when u think of the future CBDC is definitely helpful
International trade will become a hell lot easier
E-RUPI IS DIFFERENT AND E-RUPEE IS BOTH HAVE DIFFERENT WORK TO DO...
It would be better if
1.They introduced the e-rupi as a higher form of currency(token) like 1 e-rupee valued at 10000rs .So that in a way it would facilitate the small transaction into a larger sum.
2.As a current account only currency,it can give you intrest.so that more n more marchants shall use those e-rupee.
3.it should be named properly...e rupi does sound functional.
I think CBDC can help in international payments and might help vastro account process.
Some usages of it can’t be directly stated by govt officials but it can help strengthening the rupee in long run
That's a good point, Anuj.
Yes I too agree
Agree
How will it help in strengthening rupee?
This is clearly an additional way of keeping digital currency. Neither govt is forcing nor you are bound to use. This will work like the wallet of paytm Or phonepay where you don't get interest. So in any wallet system, you don't get interest. Only when you want to use, you can transfer and use. I don't see any risks absolutely. Comparing with china.. It's a shame. Everyone knows how China is controlled. It is good to argue, but intentions should be correct
As of now I do not agree 10:51 point. We are talking about Indian money so we should not be talking about globally. Every penny in India is either printed or in the form of coin. RBI has record of printed money that is in the economy and that's what going through banks. It's not like I transferred my money through my bank to your bank and just ledger entry happens. They have to exchange currency notes. After introduction of CBDC banks only has to manage ledgers. Next move could be destroying physical currency and converting it into e rupi. This way very less physical money would be moving through the economy.
This is the 1st video of urs I ever saw and I have already subscribed to u.
I have seen a few videos regarding e-rupi , but no one was telling the main thing, HOW IS IT DIFFERENT FROM "UPI", and why would people wanna shift to it. Thanks a lot for such a great in-depth video.
upi in lay man terms understood is payment via ( phone+bankaccount) to another person bank account. No tough , no carry bussiness. In a way it reduces the dependence on debit cards and credit cards.
Cbdc is like a single ledger framework. It’s supposed to provide real-time transaction in books and enabling smooth syncing of commercial bank and rbi ledgers. There’s is small chance that it can help countries to by pass the swift system if the frameworks are similar for two countries.
😂😂😂😂
The advantage of the CBDC to transact offline, will fix the current issue of UPI network reliance. Also, it will be reducing the cost of transaction as there is no intermediary and act as cash.
Completely disagree with your analysis here, seems like you are afraid of people going away from your so called investment "crypto" due to RBI digital rupee. Also you did not highlight the benefits of rupee.
The coverage is indepth and enlightening. Regarding savings for government vis a vis paper currency I think a huge amount of savings can be made in cash management costs . Not only printing but storage and transportation costs are very high. Banks and RBI has to maintain huge currency chests in so many locations. The efforts in safe transportation of currency from bank branches to their currency chests and rbi chests is huge and security costs are high. Also rbi has to pay interest on the cash of banks.
Perhaps one of the benefits might be that if the system goes digital, transaction costs can be eliminated/reduced, and it could result in greater profit margins for low-margin businesses and lower goods cost to the end-customer. This is assuming the large-scale adoption of e-Rupee and decline of the cash-economy. However, such a change is likely going to affect the job market since greater automation/disruption is usually followed by greater monetary losses and employee-lay-offs. However, I still agree that the benefits are not likely going to outweigh the costs.
Good information.. thanks for sharing 🙏🏽
Then its like bitcoin?
Then money with credit or debit done it by cbdc that be at public banks,but not with RBI.RBI controls it ,yes/no.
Cbdc is like wallet?
Govt already done by B to B mode (direct transfer).
CBDC is an alternative to bitcoin?
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some AWN27T thanks for keeping us informed during this times of doubt?
Fucking bots
Big recession lol where's the data to back that? WHERE?
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@@MultiJunkie101 it is a bot.
@@harshgoel1793 Okay brainwashed Bhakt
Digital rupee has greater control and transperant than current digital money, life of each note can be traced and conyrolled, current digital money you know movement ofceach account not each note ie the big difference, through smart money you can force some notes valid for only some transaction (purchases) only not valid for other purchases etc so gov can channelise didital notes to specific transactions only.
Well presented. Balanced & made easy.
What if Indian govt introduces a social credit system?
And the money can be freezed by govt if you have a low social credit, like how it is done in China?oney can be absolutely tracked, tracking is not the problem here, it's the power the central government has on YOUR money. (It is not entirely YOUR money, even if worked hard for it).
Nice video. But, are you sure RBI using Blockchain technology to introduce e-Rupee or something else?
hi Akshat
Thanks for such an informative video on CBDC. Really appreciate this video because right from the announcement of CBDC I really didn't understood what real advantage does it provide to a common man. finally there's a video/information point on internet that explains it in relatively simple terms.
Thanks Again :)
If put to use by the government for government funded projects, CBDC has the potential to substantially decrease corruption in govt affairs. Recommend you to check out - ruclips.net/video/8X8mNOuNw40/видео.html
This is one point that I fear he forgot to mention
Great analysis and Kudos to you for being honest in such difficult times! Initially I thought you are trying to sell CBDC but thanks for being rationale on such a sensitive topic. I hope the regime will not push it forcefully otherwise it will be Noteban 2.0.
LOL Regime is codeword for I dont like govt to monitor my transactions = GHAPLA
All major countries like US and China have also started their CBDC after UNCTAD's August report regarding the popularity and rise of cryptocurrencies around the world. You see that governments want to maintain their control over the public and they are very afraid of loosing it
They are trying to sell something which is not needed. If it gets implemented and RBI directly starts giving loans to business then corruption will increase significantly.
@@daredevil9065 just because i dont have anything to hide doesnt mean i'll let every prying eye into my private business
@@leansnscenes7806 when you have nothing to hide why bother the regime is after the ones who have. Ithna humdurdi kyon
1. Low internet penetration
2. Huge un banked economy, semi urban, rural, even cities still prefer cash
3. Digital economy is still for the lucky few
Don't really why how it would compete/alternate with existing UPI. infra
One of the reasons why I think the government n RBI is pushing it is to remove the intermediaries n for the transfer of money for direct benefit transfers n also to give various subsidies as its a pre programmable money. So yeah I hope it brings the efficiency that the system needs.
❤ᴛʜᴀɴᴋꜱ Ŧᴏʀ ᴡᴀᴛᴄʜɪɴɢ👍
ꜱᴇɴᴅ ᴀ ᴍᴇꜱꜱᴀɢᴇ ᴏɴ✍️
ᴡʜᴀᴛꜱᴀᴘᴘ…✙𝟏𝟒𝟕𝟎𝟔𝟏𝟎𝟐𝟕𝟖𝟑.
1) My question is that if we use RBI's r rupees, then banks do not come in it at all!
What will happen to the bank?
2) If the government imposes per transaction charges on UPI, then everyone will have to use erupee.
I'm shocked and surprised to hear such analysis with no study or preparation. At least you should have seen videos from other experts on this topic. CBDC can be programmed for a specific purpose e.g. buying fertilizer or grain. It can reach where banks can't service.
Hi @akshat: Awesome finance learning from your channel. I have little money saved and hail from a lower middle class family. I want to make smart investments other than traditional FDs (where actually I'm in loss as FD rates not even match inflation). How to select where else?... and how could I invest smartly with lesser risk as I've very little margin I can play with. If I want to select mutual funds then how should I find which MF is best for me and how to invest? Whether I should go with gold bonds or buying physical gold, which option should I go for and how? If I want to go with Debt bonds then need a way. Kindly guide me if possible as per how should I go ahead and not get confused. Will always be indebted for the knowledge you share. Thanks a lot....
If everyone is using UPI and if we pay directly from our account to other account isn't that call digital money,do we need another digital money??i think what we are doing is just fine,we can pay using UPI and when we want cash we can withdraw from ATM and i think is is just perfect.
The main advantage of CBDC is to facilitate transaction when there is no internet. This could help in rural areas where there is no internet connectivity to avail direct benefits transfer
Upi also works without internet
direct benefits transfer doesn't need all time internet to work.
Comparing Chinese Muslims problem with CBDC was really stupid
When we have technology where no middleman (banks) are required, why to give chance of any manipulation.
Corruption is eating the whole country from years and with small reasons now people shall be given chance to do anything they want.
Anyways RBI already collects data from the banks with information system which is mandatory for banks to provide.
His point was CBDC can be used to oppress and silence opposition or undesirable people in eyes of government.
Hi Akshat, I still don't understand what are the implications of not printing currency in physical form. Like there is a limit to how many notes are in circulation. So will CDBC have unlimited amount of currency or not?
Very well explained 👏
Short summary:
1. CBDC is an electronic version of rupee
2. CBDC is deployed on a blockchain and have a centralized ledger
3. No functional difference between making a payment by CBDC and UPI
4. CBDC seems to act in a way to empower governments more and take away power from banks
5. CBDC has no interest component. Better to keep money in bank to earn interest
6. CBDC is not designed properly and even the government is not able to properly lay out it's benefits
I guess government just wants more power over the money of the common man. They want lesser amounts of money to be left untracked via physical format, so that they leave no stone unturned for taxation. On the other hand, maintaining a centralized ledger would help people in power to e̶x̶p̶l̶o̶i̶t̶ fight corruption more 🙂 See? Win win situation for the nation 🙂
Great summary 👍
CBDC can help in dealing with corruption in government. E.g Police can get ERUPE that can only be used to fule up the police car can not be spent anywhere else or govt can see where it spent.
After CBDC, Central Government will save the per transaction cost which is paid by the Finance Ministry to the respective bank for performing transaction(for the service provided).
As CBDC allows RBI to give the service to the customer directly Finance Ministry/Central Government will manage to save heavy amount.
Excellent analysis !! 👍👍👍
I have a feeling. Hear me out. Currently direct to bank transfers are in terms of money. So basically that money can be used for anything. Like jan dhan etc. I think CBDC will or could eventually launch a system where the money (e-rupi) can be transferred for a particular cause. For example, if PM launches a education yojna so that money can ONLY and only be used for fees. Or buying cycles or buying laptops or electricity bill. The smart contract will only work on certain condition. Might sound a little too much but could be this
Appreciate the feedback.
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guidance, consultation and more investment
updates.
It will be the last nail on our monetary freedom.
What you are not talking about how different banks can be settle their transfers efficiently using CBDC , what takes 2 to 3 days happens within a few hours with CBDC - that is not being pointed out. That being said it does not really give an advantage to the retail users. However, this is a great tool for the settlement systems across the banks.
You sre right. CBDC is of no additional benefit when compared to UPI, and therd are negatives also!!
I think the main advantage could be like paying from e-wallet to e-wallet without involving any banks. 👍
But since the ledger is centralized, govt can monitor the transactions.
The real freedom is with Bitcoin.
@@abycool to tum drugs bhecta ho kya jo tumha freedom chahiye 🤡
@@pushkarerande123 so don't use it nobody forcing you 🤡
@@pushkarerande123 and nobody forcing you to read my reply 🤡🤡🤡🤡🤡
Bhakts spotted in the comments
Cdcs are mainly used for cross border payments between institutions and countries , the scope for the general public will come later ...
Nowadays, many medium sized shops are not accepting visa or MasterCard and accept only UPI
Who would've thought? 😄
Because transaction charges
Wonderfully explained ! Thank you for clarifying, i was also confused.
True Banking system may affect. but in future conventional lending process might change. If conventional lending process changes economy will be more stable in terms of NPAs. To invest People might buy bonds or some kind of financial product to lend to companies.
Excellent videos, you always make tough concepts easy :)
As an RBI Employee i can tell you all know about the advantages of digital rupee once you visit the issue section of RBI.
You don't have any idea how much labour cost, technology cost and time it takes to complete one life cycle of a single note.
Regarding your concern about centralised control, any scheme in nascent condition needs to be controlled by people who are experts in that field , my belief once the digital rupee infrastructure gets well developed control will be decentralised.
No need to print money. All digital
You say 92 ℅ money is digital. You are right. But rbi has to print all 100 ℅ of it. For anyone has right and can withdraw all his money to cash. So cash has to be printed anyways
Hi Akshat! There's one thing I would like to know. Are these CBDCs uniquely traceable? If so, then a unit specific ownership history could be made. This could allow us to identify illicit transactions. Thus discouraging and reducing such transactions.
Yeah, it is possible if implemented (which china is trying, cutting the money from Muslims).
Even if they are, only RBI (aka the govt) would be able to do it
Your efforts are welcome.
It is 0 interest rate now but it need not be forever. The central bank can directly set interest rates for cbdc wallets
First e rupee... Bank to bank transactions(its useful instead of purchasing bonds etc etc)
2nd e rupee for retailers.. I think here retailers means for bussiness bigger transactions..Already they will maintain current accounts with bank.. Its plan to curb black. hidden money from market. Govt didnt say about banks..
I think its useful for companies and bussiness people not for common man
Govt already gave upto 19 dec for any suggestions..We can use it for our queries...
But financial reforms are needed whether it will be good or bad future will say .
If I am wrong can correct me...
Digital Rupee won’t change anything right now but in future it might help Govt to track black money if adopted on wide scale
amazing content and presentation
E-rupi is a digital version of a currency note, if they allow to earn interest on it, we can deposit them in Bank the most of the problems you have mentioned will be solved.
In my opinion e-rupi will be used for giving loans. Bank will issue loan only in e-rupi, this will decrease the willfull defaulter NPA.
The interest thing can be changed by listing the erupi in stock markets and bonds and etfs but you are right it will reduce earning potential of the banks
Appreciate the feedback.
What'sap me with the number showing above for
guidance, consultation and more investment
updates.
Really good explanation of a very complicated topic... I'm really glad that i am subscribed to you.
Value of Digital Rupee and Physical Rupee is same,
But meaning of Enable and Unable is not the same.
Thanks Akshat! Good job of explaining complex things in simple words!
I don't know if I missed out on two crucial points which are the tackling of counterfeit and the capture of black money. And in the long run the money can be vertically split into many types like carmoney foodmoney etc., In such a way that you can't buy car with foodmoney and food with carmoney. This will allow one or two persons to eventually control interest and inflation targets by spend category. Hope lessons will be learnt in hindsight. Man eats man.