What is the difference between RBI E-RUPEE VS CRYPTOCURRENCY
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What is RBI's e-Rupee? E-Rupee or CBDC is a legal tender issued by the RBI, similar to sovereign currency with a different form, the central bank has said.
Pilot project for CBDC:The RBI on Friday said it will start the pilot launch of e-Rupee for specific use cases and released a concept note on the same
E-Rupee concept note: The concept note of the e-Rupee states the features and purpose of the CBDC, and objectives, choices, benefits, and risks of issuing it
Two types of e-Rupee :The RBI said that there may be 2 types of the e-Rupee, i.e., general purpose or retail (CBDC-R) and wholesale (CBDCW).
The basic core difference between a cryptocurrency and digital money is that cryptocurrencies use decentralised network.
Whereas CBDCs, though use the blockchain technology, is entirely centralised. A central bank oversees and facilitates the transactions with the help of other third-party organisations
In the core, cryptocurrencies are private money, whereas CBDCs are government-backed forms of money.
There are nine countries that have fully launched their CBDCs. Eight of the nine countries are located in the Caribbean
The Sand Dollar of the Bahamas was the first CBDC of the world, which was launched in 2019.
many nations, such as China, Ghana, Jamaica, and some European countries are exploring their CBDC products. Some have even launched their digital currencies.
Freely convertible Unlike cryptocurrencies, the e-Rupee will be freely convertible against commercial bank money and cash