Digital Money: The Future Of Indian Currency
Introduction to Digital Money
Before diving into the topic of digital money, we better know what is digital money. Digital Money is a currency which is not in a physical form such as Rupee Notes or coins but in purely electronic form but still values the same as fiat money or traditional currency.
A common man in India has a lot of daily tasks to do apart from work, like dropping kids to school, buying groceries, bringing some snacks to home while returning from office, buying a lunch meal in case it hasn’t prepared at home and the list goes on. During this typical schedule forgetting something like a wallet is not a most uncommon thing. But these days it is the least bother to him. Thanks to the e-wallets.
Digital Money Apps
E-wallets are becoming crazy famous in India. People are buying even a tea from a tea stall through an e-wallet, Paytm grabs the pulse of an Indian consumer, and racing through the track like a speedster. Now tech giants like Google with Tez, Facebook with WhatsApp money and Airtel with Airtel Money joins the race.
How does Digital currency work in India?
To get started with an Electronic wallet, all we have to do is link it with our bank account and Aadhar account, that’s it. Life will be a lot less easy for us if we use e-wallets. The only things the consumer has to worry about is a poor internet connection and low battery on phone. Recently government declared that Aadhar linking is mandatory for every e-wallet.
UPI i.e Unified Payments Interface has stated that more than 150 Million transactions are happening in every month. Our government’s own BHIM app has more than 10 Million downloads in Google store itself.
Digital Currency in India
Digital Currency in India is becoming a big thing. Because of the Internet revolution, data tariff rates became very much affordable and because of that everyone is buying smartphones, so Internet banking will have a huge impact on traditional banking. Usually, people used to deposit and withdraw money from banks, It is a lengthy process, a customer has to go to the bank in working hours and then has to fill a form and wait in line and then only he can make a transaction.
So banks came up with ATM’s which we don’t have to go to bank but still can withdraw cash and later Banks introduced cash deposit machines, so that we can deposit cash anytime without going to banks, but the problem with these in India is, because of the huge population people still have to wait in queues mostly, even if there is no queue, we can see ATMs greeting us with “temporarily out of service” or “No Cash” signs which are frustrating for a needy person. Digital currency is the only solution to checkmate all these annoyances.
Digital Currency Pros and cons
If every citizen uses digital currency in India life will be a lot less easy. We can save tons of time by not waiting in queues. If there is no fiat currency but only digital currency then we can end even the biggest mammoths like corruption and black money easily because every digital transaction will be recorded. Mobile payments just made this process easier. Now every mobile number is linked with Aadhar card, so whoever pays anyone through any mode of online payment then the transaction will be recorded, this type of transparency is good when it comes to tax payments.
Lack of Awareness among people is a major con in the digital money. Due to high illiteracy, many scams may happen. The government has to promote awareness campaigns and also media has to play a big role in educating the public. If these things happen we can see a better Digital India.
Digital Money Investment
Now even RBI is planning to launch a digital currency of its own. It is still in initial talks stage, It may or may not happen but even the RBI realized Investing in digital currency is stepping towards future. India’s central bank announced a ban on selling or buying digital currencies, maybe that is the part of a strategy to launch its own digital currency in India. Only time will tell.
Bitcoin is shaking the world, Still, it hasn’t made any strong impact on India, But when the Government itself comes into cryptocurrency game, our economy will be a lot less boring. In the google play, we can find many many digital money apps, even in India. That means people are changing their ways of investing. They used to Invest money in Lands and Gold but times have been changing now, They are now leaning towards Mutual Funds, Stock Markets. If digital money comes into play we can safely say that many will take part in Digital Money Investment.