{"id":166100,"date":"2022-02-02T21:59:34","date_gmt":"2022-02-02T16:29:34","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=166100"},"modified":"2022-02-16T12:06:46","modified_gmt":"2022-02-16T06:36:46","slug":"distinguish-between-digital-rupee-and-cryptocurrencies","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/distinguish-between-digital-rupee-and-cryptocurrencies\/","title":{"rendered":"[Answered] Distinguish between Digital Rupee and cryptocurrencies. What are the advantages of having own digital currency for the Indian economy?"},"content":{"rendered":"\n\n\n
Introduction:<\/span><\/b> Write a brief note on the Digital Rupee.
\n<\/span>Body<\/span><\/b>: <\/span>Write down a few differences between the digital rupee and cryptocurrency, such as legal tender, etc. Write down a few points on the advantages of digital currency for India.
\n<\/span>Conclusion:<\/span><\/b> Write down a few challenges associated with the digital rupee.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Digital Rupee is a Central Bank Digital Currency (CBDC) based on blockchain technology. It was announced during the Union budget 2022. It may seem similar to cryptocurrencies, as both are based on blockchain technology. However, there are critical differences.<\/p>\n\n\n\n\n\n\n\n
Digital Rupee<\/td>\nCryptocurrency<\/td>\n<\/tr>\n
Will be issued centrally by the RBI<\/td>\nDecentralized creation by private individuals and organisations.<\/td>\n<\/tr>\n
Will be legal tender in India<\/td>\nNot legal tender in India.<\/td>\n<\/tr>\n
It will be a\u00a0fiat currency in digital form, i.e. it will be exchangeable with other fiat currencies.<\/td>\nNot fiat currency but assets created privately to facilitate transactions.<\/td>\n<\/tr>\n
It will have intrinsic guarantee by the RBI for payment to the holder.<\/td>\nNo such guarantee or claim.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The digital rupee can have various advantages for the Indian economy<\/p>\n