Across the globe, the currency has evolved over time. From the barter system, it shifted to metal coins. Then it turns to paper notes, ban knotes. Today we also have NEFT and IMPS. Among all these mediums of exchange, we can also see fiat money like cryptocurrency and NFT are trending. In FY 22 budget we talked about central bank digital currency. This indicates that we are now moving towards a cashless economy.
If we are looking into cashless, it means we are moving towards digitalization. So, It invokes concerns such as – cybersecurity, penetration of internet into society, development in the latest technology like artificial intelligence, blockchain. Sweden, the first country to introduce banknotes in the 1960s, will be a cent present cashless economy by 2022 but is India ready for it ?
India has fairly developed in the latest technology. Post demonetization we have also recorded high digital transactions. People are now getting comfortable with digital transactions over cash. UPI, NEFT, IMPS is on a boom. With Bharat Pe, Phone Pe, Paytm , BHIM we can see a lot of companies are coming into play. The concept of e-wallet such as amazon pay, airtel money and many other are being promoted. However, after this pandemic internet penetration has also evolved many folds. It has reached many remote and rural areas too.
With this, we can safely conclude that India is ready for the cashless economy. The current announcement in budget and upcoming startups in the payment sector is a tenderfoot towards the next revolution.
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