– The Reserve Bank of India is getting ready to start using its central bank digital currency (CBDC), which it classifies as money in the digital form of legal tender. – It will be exchangeable at par with current currencies, accepted for payments, and regarded as a secure store of value. It is sometimes referred to as the digital rupee.
Digital Rupee
– The digital rupee differs from UPI in that it can be exchanged for other currencies, such as bank deposits, but it does not accrue interest like cash. – The attributes of physical currency, such as trust, safety, and settlement finality, would be offered by the e₹-R, according to RBI.
How is digital rupee different from UPI?
– Like traditional currency, the digital rupee would be distributed by banks. – Users must save their digital wallet on their mobile device or through the digital wallet service of a participating bank. – Payments can be made to retailers using the QR codes that are displayed at retail locations.