Digital Rupee

The Reserve Bank of India (RBI) launched India's first digital rupee pilot project for the wholesale sector on Tuesday (November 1). The digital rupee (e₹), also known as Central Bank Digital Currency (CBDC), is a digital representation of currency notes produced by the Reserve Bank of India. It is quite similar to banknotes, but because it is digital, it is likely to be easier, faster, and less expensive. It also has all of the transactional advantages of other types of digital currency. Digital currency is basically payment systems which involve digital transactions in electronic form and is not physically tangible like rupee.

Digital rupee is different from crypto currency.

PayMe CEO and Founder Mahesh Shukla stated, "There is no direct comparison between the CBDC (Central Bank Digital Currency) and bitcoin since, unlike cryptocurrencies, the digital rupee is not a commodity or virtual asset. Furthermore, cryptocurrency is not quite money."

This digital rupee may be traded for cash in the same way as traditional banknotes issued by central banks such as the RBI can. The RBI will continue to create CBDCs, which serve the same purpose as banknotes but are not decentralised assets like cryptocurrencies.

The primary goal of the Reserve Bank of India (RBI) in adopting the Digital Rupee.

The main objective of the Reserve Bank of India (RBI) in launching the digital currency pilot project is to progress India in the race for virtual currencies. This is also due to the rising popularity of cryptocurrency. Customers in India can pay directly, reducing transaction costs and allowing for real-time account settlements.Customers, both wholesale and retail, will have continuous access to the payment system. Furthermore, adopting a digital rupee will accelerate cross-border transactions and eliminate the need to create a bank account.