What is the difference between cryptocurrency and RBI E-RUPEE?
The RBI has declared that the E-Rupee, or CBDC, which resembles sovereign money but has a different form, is legal tender and has been issued by the government.
What is the RBI e-Rupee?
The RBI issued a concept note on Friday, announcing that it will begin a trial rollout of the electronic rupee for particular use cases.
CBDC pilot project
The aims, alternatives, advantages, and disadvantages of issuing the CBDC are all outlined in the concept note for the e-Rupee.
Concept note for E-Rupee
According to the RBI, there may be two different forms of e-Rupee: general purpose or retail (CBDC-R) and wholesale (CBDC-W).
Two e-Rupee variants
The RBI clarified the difference between the e-Rupee and digital currency by stating that a CBDC would be its obligation and not a commercial bank's.
E-Rupee vs. Electronic Money
The RBI also reaffirmed its caution about cryptocurrencies, saying they can be dangerous and cause the macroeconomy to become unstable.
Crypto-related worries
The RBI asserted that, as opposed to crypto, a CBDC would provide the general public with a risk-free virtual currency with respectable advantages.
"Reasonable Advantages"
Although cryptocurrencies may threaten monetary policy, the RBI stated that the e-Rupee will satisfy the need for protected digital money.
Losses and Remedies
The e-Rupee, unlike cryptocurrencies, will be easily convertible against cash and commercial bank currency.