[dragracer567]

Originally Posted by stewie

- This is unlike physical currency or digital currency where the control of transaction stays with you.
- Digital Currencies (like other crypto coins ex. Bitcoin, Ethereum etc) are based on blockchain technology.
- Blockchain verification is peer-based, which means you do not have a central authority (like a bank) which confirms authenticity of digital currency. Rather, the authenticity can be verified from the digital token containing the digital currency itself.

I wonder how this changes when the issuing authority of the digital currency itself is a Central Bank like the RBI. Can the central bank keep track of each and every one of your transactions? Or is it impossible because they use blockchain technology as well?

Also will the digital currency issued by the central bank (say the 'digital rupee') hold it's value independently from the physical currency like INR which maintains its value through a mix of FOREX and other market factors?

[stewie]

Originally Posted by DonHyd

It is a bit difficult to grasp until they become mainstream and are accepted everywhere. What will happen once the demand surpasses the ability to mine? And who exactly mines them?

As demand increases, the value of the digital currency will increase as with any currency/commodity.
There's no clarity yet on the RBI implemetation of digital currency to make any guess how it will be mined/made available.

Originally Posted by dragracer567

Can the central bank keep track of each and every one of your transactions? Or is it impossible because they use blockchain technology as well?
Also will the digital currency issued by the central bank (say the 'digital rupee') hold it's value independently from the physical currency like INR which maintains its value through a mix of FOREX and other market factors?

If implemented the way other blockchain based coins, then by definition transaction tracking cannot occur.
Seeing as this is by a sovereign state, I doubt they will implement it the same way.
Plus mining inherently provides the miner with the value of the coin. Doubt this will happen with the RBI issued one.
I'm sure the RBI will also peg the value of the digital currency to the physical/legacy one.