What are the implications of India's shift to digital over physical currency?

September 29, 2020

digital-currency-and-its-implications-for-india

One of the greatest lessons that our country can take away from demonetisation is that as a culture, we have traditionally been over-dependent on physical currency. As soon as our reliance on cash was challenged, we had an immensely hard time dealing with its implications.

However, today with the advent of digital currency and the option to even apply for Credit Cards online, India is moving forward and away from its dependence on physical currency. In today’s time, getting a Credit Card online is so simple and efficient that the country is bound to be headed into the future of digital payment. From cost savings to more security, here are the many implications of India’s recent shift from physical to digital currency:

  • Saves cost for the entire country:
    As a country, we tend to take the presence of our physical currency for granted. For generations, it has been the norm and the way that the economy has functioned. However, what we don’t often realise is that the production and circulation of physical currency can be an incredibly costly and time consuming process.

    The Government spends a good amount of its time, money and resources in the production of cash and coins. Similarly, companies and organisations have to spend a lot in order to ensure the storage, safety and circulation of physical currency.

    Digital currency, on the other hand, is easy, convenient and much more economical to maintain. With India’s impending shift from physical to digital currency such as Credit Cards, there is a huge opportunity to preserve the bulk of the money and resources being expended towards the maintenance of physical currency. This will help the country reap huge savings every year.
  • Saves cost for every individual:
    The shift to digital currency would do more than just benefit the country’s overall economy. It will also prove financially beneficial to each and every individual with regards to their regular payments. A digital payment method like Credit Card brings with it not only convenience in making purchases, but also a variety of useful discounts and offers. They offer features such as tie-ups with hotels, restaurants and stores, providing customers with discounts that help them save ample money in the long run.
  • Increases transparency:
    One of the prime goals of demonetisation was to crack down on black money, that is money which is illegally obtained and typically stored and hidden in the form of physical currency to avoid detection. Indeed, corruption, tax evasion and bribery are some of the most adverse issues affecting the country’s economy. In most cases, this type of misuse of finances is only made possible by the means of physical currency since it is hard to trace and can be kept anonymous.

    With the shift to digital currency, India could find a practical and pervasive solution to these issues. By their very nature, digital payment methods are more technical and organised than physical currency. This means that every payment leaves behind a paper trail that can be easily traced back to its source. Therefore, digital currency can make payments more transparent than ever and act as a major obstacle for people looking to launder money or take advantage of the country’s finances.
  • Makes money more secure:
    One of the major disadvantages of physical currency, especially in our country, is that it always runs the risk of being stolen. For instance, when it comes to cash, it is essential to stock up enough in case a payment needs to be made at a moment’s notice. However, this also means that a person is more vulnerable to a financial hit and has more to lose in case a theft takes place. Due to its tangibility, physical currency always tends to become a liability rather than a mode of convenience.

    Therefore, digital currency provides a simple alternative to payments without the additional burden of liabilities. Since there is no tangible currency to steal, one is less likely to run the risk of losing a large amount of money in one go. For instance, even if a Credit Card gets stolen, any payments that might be attempted through it can be blocked or invalidated. As a result, keeping their finances safe can become much easier for the Indian population.

Hence, there are a range of benefits for the country’s population by moving to the new age of payments. You too can make the most of the country’s digital currency options by opting for Credit Cards online. To enjoy these benefits, you can apply for a Credit Card online from ICICI Bank with a simple 3-step process. With this Credit Card, you can enjoy fabulous discounts on shopping, restaurants and fuel discounts. What’s more? You can also enjoy a variety of rewards and cashbacks and your Credit Card is sure to be protected against fraud with the security of a chip card.

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