Overview of Digital Rupee

Digital Rupee is a real digital currency launched by Reserve Bank of India (RBI). It is in the same denomination as paper coins and traditional currency. It’s an electronic form of cash that can be used to buy and sell products and services online.
Digital Rupee is a true currency that can be used for transactions both online and offline. Cryptocurrencies are digital assets that are used for speculation and investment.

Understanding Cryptocurrency

Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are digital, global, open-source, and decentralized. But there’s one big problem: they’re not actually currencies. Cryptocurrencies are decentralized, meaning they are not regulated by governments or banks. This makes them an attractive option for people who want to avoid government control and surveillance. While there are many cryptocurrencies available, Bitcoin is the most popular and is accepted by a number of online and physical retailers.
So what’s the difference between digital rupee and crypto currency?

Differences Between Digital Rupee and Cryptocurrency

There are a few key distinctions between digital rupee and other forms of cryptocurrency, like bitcoin.
To start with, digital rupee is centralized- it’s regulated by the RBI, unlike crypto currencies which are decentralized and aren’t regulated by any central authority. This makes digital rupee more stable and safer to use, as it’s less likely to experience sudden price fluctuations. Crypto currency is decentralised form of money.

Digital rupee is also India’s officially accepted legal tender. Few other countries also have their own digital currency. But digital rupee is the only one that’s been officially recognized by the Indian government. Crypto is not government recognised.

Digital rupee uses private blockchain, whereas, crypto currency uses public blockchain.

One more difference between digital rupee and crypto currency is user identification. With digital rupee, users’ transactions are linked with their bank accounts. This means that digital rupee is more efficient and transparent due to blockchain technology. With cryptos, the transactions are anonymous.

Digital rupee is the electronic form of cash, which will be used for buying and selling goods and services. Unlike cryptos you cannot treat it as an asset class and invest in it.

Ultimately, while both digital rupee and crypto currency offer some form of digital currency, the key difference is their security measures. The level of security provided by digital rupee offers a degree of protection not seen in crypto currencies and makes it a better choice for those looking for safe and secure payments.

In addition, while crypto currencies use an open network with no permission, the digital rupee uses a permitted private blockchain. This makes it easier to track and ensure that transactions are genuine before they are processed. As a result, it is much harder for bad actors to commit fraud or money laundering with digital rupee than with crypto currency.

Furthermore, one of the key differences between digital rupee and crypto currencies the fact that digital rupee is issued in denominations consistent with those of paper notes or coins. This means that you won’t be getting confused when dealing with any large transactions involving digital rupee.