Explanation: Today, countries are sized with idea of cryptocurrency as in this modern digital age, paper banknotes are gradually losing their role as a reference value in payment system across the worlds. A cryptocurrency like bitcoin is cryptography-based peer-to-peer electronic cash system, founded on blockchain and distributed ledger system, that allow the transfer of values without any financial intermediary such as banks. CBDC is a digital or virtual currency, but it differs from the private virtual currencies and cryptocurrencies that have exploded in popularity over the last decade. Because there is no issuer, private virtual currencies do not represent any person’s debt or liabilities. They aren’t money, and they aren’t even close to being currency. The Reserve Bank of India has been a vocal opponent of private cryptocurrencies, claiming that they could jeopardize national security and financial stability. The Reserve Bank of India (RBI) will issue Central Bank Digital Currency (CBDC), which will be a digital form of legal tender.
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