Difference between digital rupee and cryptocurrency
Cryptocurrency :-
A cryptocurrency is a decentralised digital asset and a medium of exchange based on blockchain technology. However, it has primarily been controversial due to its decentralised nature, meaning its operation without any intermediary like banks, financial institutions, or central authorities. This makes it immune to the government’s interference or manipulation. Also, its value is determined by the free market forces and is not linked to any commodities. Thus it does not have any intrinsic value,” said Archit Gupta, Founder and CEO – Clear.
Digital Rupee / CBDC :-
On the Contrary, Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India (RBI) will be a legal tender in a digital form. Another benefit of digital currency is that they do not get torn, burnt or physically damaged. Neither can they be physically lost. “The lifeline of a digital currency will be indefinite compared to physical notes,” he added.
“The digital rupee will be different from Bitcoin, Ethereum and other cryptocurrencies in the sense it will be backed by the government. Secondly, having an intrinsic value on account of government backing, the digital rupee will be equivalent to holding a physical rupee equivalent,” said Manoj Dalmia, Founder and Director, Proassetz Exchange.
On the Contrary, Central Bank Digital Currency (CBDC) issued by the Reserve Bank of India (RBI) will be a legal tender in a digital form. “It is the same as a fiat currency (government-issued currency) and can be exchanged one-to-one with existing currency,” he added.
