As digital currencies continue to gain popularity, many countries are exploring the idea of creating their own digital version of their national currency. India is one such country that is currently launched a digital Rupee, also known as an e-Rupee.
The retail CBDC launched by RBI on Thursday (1st December) is a digital token that will function as the digital equivalent of a banknote. It can be kept in a wallet on a mobile phone and spent as Cash is spent
This is a big step forward for the Indian banking system and will surely bring many benefits to the customers. With this new system, customers will have more flexibility and convenience in their transactions. Moreover, it will also help in reducing the chances of fraud and corruption.
Here Are 7 Important Things About India’s e-Rupee
So, 1) Is India’s Digital Rupee a Cryptocurrency?
what exactly is a digital Rupee?
Essentially, it is a form of digital token that represents legal tender. Unlike cryptocurrencies, the digital Rupee or e-Rupee is issued in the same denominations as paper currency and coins.
The Reserve Bank of India (RBI) has reportedly worked on a digital rupee, which has led to speculation that it could become a cryptocurrency. However, it’s important to note that the digital rupee is not the same as a cryptocurrency.
A cryptocurrency is a decentralized digital asset that uses cryptography to secure its transactions. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
The digital rupee, on the other hand, is a digital version of the Indian rupee that would be issued by the RBI. It would be similar to existing digital payment methods like PayPal or Paytm. However, the digital rupee is not decentralized.
One of the main advantages of a digital Rupee is that it is much more efficient than paper currency. For example, tracking and preventing money laundering and other financial crimes would be much easier. In addition, a digital Rupee could also help to reduce corruption as it would be more difficult to hide or tamper with transactions.
2) How is Digital Rupee different from Cash?
There are a few key differences between the Digital Rupee and Cash:
- Digital rupees are stored electronically, while Cash is physical currency. This means that digital rupees can be transferred more quickly and easily than Cash.
- Digital rupees are not subject to the same physical limitations as Cash, such as denomination or country.
- Digital Rupee will be issued by the RBI, whereas Cash is issued by the government.
- Digital rupees can be used to make purchases online, while Cash cannot.
- The Digital Rupee will be managed by a centralized authority, whereas Cash is managed by commercial banks.
- The Digital Rupee will be backed by the RBI’s reserves, whereas Cash is not backed by any central bank.
- The Digital Rupee will be available through online and offline channels, whereas Cash is only available through offline channels.
- The Digital Rupee will be subject to KYC norms, whereas Cash is not.
- The Digital Rupee is an exciting new development that has the potential to change the way we make payments in India.
It is important to understand the difference between the Digital Rupee and Cash, so that you can make the most of this new currency.
3) How to buy a Digital Rupee?
The new digital currency can be exchanged through a digital wallet provided by the participating banks. The digital rupees will be stored on mobile phones or other devices.
This is a great move by the RBI as it will help in reducing the dependence on Cash. Moreover, the digital rupee will also be helpful in curbing black money. It is also expected that the Digital Rupee will boost the country’s economy as it will make transactions more efficient.
If you are planning to buy the Digital Rupee, here is what you need to do:
1. Look for a participating bank: The first step is to look for a bank that is offering the digital rupee. You can check with your local bank or look online to find a list of participating banks.
2. Create a digital wallet: Once you have found a participating bank, you will need to create a digital wallet to store your digital rupees. This can be done through the bank’s mobile app or website.
3. Add money to your wallet: You can add money to your digital wallet through various methods, such as net banking, debit card, or UPI.
4. Start using the Digital Rupee: Once you have added money to your wallet, you can start using the digital rupee for making payments. You can use it to pay for goods and services online or offline.
4) Where to buy e-rupee?
A total of 9 banks have been selected to take part in the project which is aimed at exploring the feasibility of a Central Bank Digital Currency.
- State Bank of India
- Bank of Baroda
- Union Bank of India
- HDFC Bank
- ICICI Bank
- Kotak Mahindra Bank
- Yes Bank
- IDFC First Bank
The first four cities the Digital Rupee release pilot would cover are Mumbai, Delhi, Bengaluru, and Bhubaneswar. Later, Shimla, Hyderabad, Indore, Kochi, Lucknow, Gangtok, and Guwahati would be added.
5) Where & how can I shop with digital rupee?
There are many ways to shop with digital rupees.
You can use them to purchase goods and services online, or in person at certain stores. You can also use them to send money to friends and family.
One of the best ways to shop with digital rupees is to use them at online stores. Many online retailers accept digital rupees as a form of payment. This means you can shop from the comfort of your own home and pay with digital rupees.
You can also use digital rupees to shop in person. Some stores have started accepting digital rupees as a form of payment. This means you can pay with digital rupees just like you would with Cash or a credit card.
Finally, you can also use digital rupees to send money to friends and family. This is a great way to avoid costly bank transfer fees. You can also use digital rupees to make international payments.
Digital rupees are a versatile and convenient way to shop. Whether you’re shopping online or in person, you can use digital rupees to make payments. You can also use them to send money to friends and family. With so many uses, digital rupees are a great way to make your life easier.
6) Can I transfer digital money to friends & family abroad?
If you’re looking to transfer digital money to friends and family abroad, there are a few things you’ll need to keep in mind.
1) First, you’ll need to make sure that the recipient has a digital wallet that can receive the funds.
2) Second, you may need to pay a small fee for the transfer.
3) Finally, the recipient may need to have a digital rupee wallet in order to receive the funds.
7) Will the digital rupee appreciate or remain stagnant?
There is no question that the digital rupee will appreciate in value over time. The Indian government has already launched the currency, and this will likely increase demand for the digital rupee. However, it is difficult to predict how much the digital rupee will appreciate in value. It will likely depend on the success of the Indian government’s plans to promote the use of the digital rupee.
With this, we end our blog. We hope you enjoyed reading it as much as we enjoyed writing it. Thank you for being part of our journey.