Friday, 24 March, 2023

For low-value transactions, RBI's digital money to have anonymity feature

<p>The RBI is working on a central bank digital currency (CBDC) that could include an anonymity feature for low-value transactions, the level at which cash transactions are allowed. Higher-value transactions will be recorded in the ledger, allowing for traceability. If a digital currency is to have the utility of paper cash, it must have its anonymity feature for daily transactions. The system requires a mechanism that destroys the details of low-value transactions.</p>