Q. Consider the following statements:
1.E-rupee is a cryptocurrency issued by the Indian government.
2.The e-rupee is different from other digital payment methods, such as UPI, in that it is a direct liability of the RBI.
Select the correct answer from the codes given below:
Answer: B
Notes:
Statement 1 is incorrect. E-rupee is a digital currency issued by the Reserve Bank of India (RBI) as a central bank digital currency (CBDC). It is a CBDC, which means that it is issued and regulated by the central bank. Cryptocurrencies, on the other hand, are decentralized and not backed by any government or central bank.
Statement 2 is correct. The e-rupee is different from other digital payment methods, such as UPI and Paytm, in that it is a direct liability of the RBI. This means that it is backed by the full faith and credit of the government of India. The e-rupee is also different from cryptocurrencies in that it is not decentralized and is not subject to the volatility of the cryptocurrency market.
Source: ForumIAS
