RBI Digital Currency: How Will The E-rupee Work, And How Much Will It Be Different From Cryptocurrency, Know Full Details

A concept note has been issued by RBI on Friday regarding the digital rupee (e-rupee). The announcement of the Digital Rupee was made by the country's Finance Minister Nirmala Sitharaman in the budget for this financial year. The concept note issued by the RBI states that the central bank will soon launch a pilot project of the e-rupee with limited use to test the digital currency. The decision on the finalization of the digital rupee will be taken by the RBI only on the basis of the feedback received from the pilot project.

Let us tell you, in this concept note, along with technology and design, the use of digital rupees and the system of its issuance have been discussed. After this, it is now believed that soon people will get to see the digital avatar of Rs. Let us know how useful Digital Rupee will prove to be for the common man.

What will be the use of e-rupee?

According to RBI, two versions of the digital avatar of the Rupee will be launched. The first would be for wholesale use for interbank settlement and the second for retail. As per the indirect model proposed by RBI, retail customers can keep the digital currency in the wallet provided by their bank or service provider.

How different will it be from cryptocurrencies?

E-Rs will be issued by RBI. It will be recognized by the government. At the same time, all cryptocurrencies with bitcoin are non-government in nature. Although it may use the same blockchain technology as bitcoin, the position on this is unclear. You cannot mine it like bitcoin.

e-rupee transactions

The digital avatar of e-Rs will be token-based. This means that you can send money through the public key of the person to whom you want to send money. It can be like an email id. You need to enter a private key or password to send money. Let us tell you, e-rupee will work even without the internet. However, detailed information on this is yet to come.

how much interest will you get?

It has been told in the concept note of RBI that no interest will be paid on e-Rs. Explaining the reason behind this, the central bank said that if this step is taken, then a large number of people can get involved in withdrawing money from banks and converting it into e-rupee.

These countries have adopted cryptocurrency

Before India, countries like Dubai (UAE), Russia, Sweden, Japan, Estonia, and Venezuela launched their own cryptocurrencies.