How Different Is the Digital Rupee From Cryptocurrency? - Entrepreneur

Signing out of account, Standby…
There is no direct comparison between the digital rupee and cryptocurrency, as both serve different purposes
The Reserve Bank of India (RBI) has launched its Central Bank Digital Currency (CBDC)-Retail pilot project, called the digital rupee. The digital rupee for wholesalers has also been launched for making large transactions, while the second phase is for retailers or everyday users. A total of nine central banks, including the State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC, are taking part in this pilot project.
Most people confuse the digital rupee with cryptocurrency as both are virtual in nature. But, indeed, both are very different from each other. There are several key things that differentiate them from each other.
What is a digital rupee?
The digital rupee would be just the digital form of the physical rupee, which can make transactions and settlements easier than ever before. It can be exchanged at par with physical cash and can act as a safe store of value. It can also be a store of value of physical cash or electronic deposits. The digital rupee would be legal and acceptable for the wholesale market, making large transactions in government securities issued by the RBI.
What is cryptocurrency?
A cryptocurrency is a form of currency that is virtual and uses cryptography to secure transactions. It is a peer-to-peer system where anyone can send and receive payments without an intermediary. It works on a public blockchain infrastructure that records all transactions.
Digital rupee vs cryptocurrency
There is no direct comparison between the digital rupee and cryptocurrency, as both serve different purposes. The digital rupee is a step ahead of taking India towards the digital revolution. There are many interesting benefits of digital forms of currency.
What are the features of the digital rupee?
How can the digital rupee benefit people?
As most businesses in the post-pandemic era now prefer online transactions over cash, introducing the digital rupee would be one step toward a cashless economy. Risks such as money laundering or theft would easily be negated this way. Since cash moves from one person to another very easily, the government can now keep track of it. With the usage of the digital rupee, corruption and human errors would also decrease drastically.
The significant benefit that individuals can get through the digital rupee is the ease of making cross-border transactions around the clock. Like checking the bank balance, one can check their balance on the digital wallets as we advance. In the coming years, the digital rupee will become just another mode of payment for purchasing goods and services. It would reduce the dependencies on physical cash and cut down costs, storage, and transportation.
The digital rupee will increase transparency and efficiency, allowing for real-time tracking and ledger maintenance. Since the RBI backs it, the digital rupee would mitigate the volatility risk. It would bring all the benefits of crypto while also maintaining the safety net of regulated and legal tender.
The digital rupee is a progressive step towards the Digital India vision. After it became part of mainstream society, things would become more accessible to the masses and the government.
Teena Jose
Jeremy Utley and Perry Klebahn
Nicole Bernard
Copyright © 2022 Entrepreneur Media, Inc. All rights reserved.

Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media Inc.
Successfully copied link

source

How To Make Huge Profits In A Short Time With Crypto
Get detailed training system that shows an absolute beginner (without any skill) how to make huge profits in a short time with crypto.