Written by 7:19 am Crypto News

Digital currency: 7% Indians own digital currency, Ukraine has the highest 12.7%


United Nations (UN) report says that the use of cryptocurrencies worldwide has increased at an unprecedented rate during the Covid-19 epidemic. The report also pointed out that more than seven percent of the population in India has digital currency.

The UN’s trade and development body UNCTAD said that in 2021, 15 of the top 20 economies in terms of the share of the population holding cryptocurrencies were the economies of developed countries. Ukraine tops the list with 12.7 percent. It is followed by Russia (11.9 percent), Venezuela (10.3 percent), Singapore (9.4 percent), Kenya (8.5 percent), and the US (8.3 percent). In India, 7.3 percent of the total population owned cryptocurrencies in 2021 which is ranked seventh on the list. UNCTAD said that during Covid-19, the use of cryptocurrencies has increased very rapidly around the world, including developed countries. If cryptocurrencies become a widespread mode of payment and unofficially replace the domestic currency, it could jeopardize the monetary sovereignty of countries.

India is likely to get its official digital currency in early 2023. It will be similar to an electronic wallet operated by a private company currently available, but will have a ‘government guarantee’ attached to it. A top government source gave this information. Finance Minister Nirmala Sitharaman, while presenting the Budget for 2022-23 last week, had said that the central bank-backed ‘Digital Rupee’ would be introduced soon.

The source, who did not wish to be named, said the digital currency issued by the RESERVE Bank will have specific digits like the Indian currency. It will not differ from ‘flat’ currency. It will be his digital form. In a way, it can be said that it will be a government-guaranteed digital wallet. Units issued as a digital currency will be included in the currency in circulation. The source said that the central bank has indicated that the digital rupee will be ready by the end of the next financial year.

The digital rupee blockchain developed by the Reserve Bank will be able to detect all types of transactions. Mobile wallets of private companies do not currently have this system. Explaining this, the source said that people currently transfer money to private companies using electronic wallets of private companies. This money remains with them and these companies pay merchants i.e. shopkeepers etc. on behalf of customers on a transaction.