The Digital-Rupee is a currency that cannot be touched but may be used similarly to regular money.
The digital rupee (e₹), commonly referred to as digital currency in India, is a digital note produced by the Reserve Bank of India.
This also goes by the term of central bank digital currency (CBDC).
Digital currency was first suggested in January 2017 and introduced in November 2022.
What is a digital-rupee?
Due to the fact that it will have the same value as note currency, this is not like cryptocurrency. For instance, one rupee is equal to one digital rupee.
People are no longer worried about keeping cash. They have the option to store their money in the form of mobile digital currency.
Nirmala Sitharaman, the finance minister of India, announced the launching of the digital currency this year when presenting the budget.
And by providing the public the gift of digital cash, they have stayed true to their word.
The government made the decision to introduce digital currency in order to cut the expense of generating the transactional notes.
The RBI will introduce primarily two forms of digital currency.
- Digital-rupee wholesale
- Digital-rupee retail
The banks will use this currency for their intermediary transactions and purchasing of government securities (which means transferring money from one bank to another).
The general public will be able to use this to complete their transactions.
Currently, the digital-rupee pilot project is being launched as a project for digital rupee wholesale. The whole public will soon be able to use it.
How digital rupee is different from cryptocurrency
We will go through some of the differences between the digital-rupee and cryptocurrencies below.
- In contrast to cryptocurrencies, the digital-rupee is legal because it is legally issued by the RBI. In contrast to the digital-rupee, which the RBI launched, there is no banker for cryptocurrencies.
- Second, unlike cryptocurrencies, the value of the digital rupee is equivalent to that of the note currency.
- By visiting a bank, you can exchange rupees for digital cash at any moment, which is not possible with cryptocurrencies.
Banks Selected For Digital-Rupee
- State Bank Of India (SBI)
- Kotak Mahindra
- Bank Of Baroda (BOB)
- Yes Bank
- Union Bank Of India
- IDFC First Bank
- HDFC Bank
Benefits Of Digital Rupee
We will go through some of the advantages of digital currency below.
- The first advantage of the digital -rupee is that it can still be used even if you don’t have a bank account.
- By going to bank, you can convert digital-rupees into note cash.
- In the future, you will be able to use it even without an online connection.
- Like the note currency, it is recognised as legal tender.
- The government will save money that it currently spends annually on note production. The cost of printing notes is about 4500 crore rupees annually.
- The digital rupee will soon be used to destroy the bogus money.
- Given that note currency has a lifespan of two to ten years, the money will survive a long time. However, the digital-rupee will remain intact for a very long time.
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