RBI Launches digital currency in India – Is it really cryptocurrency?

RBI i.e. Reserve Bank of India has recently launched a new Currency known as Digital Rupee or Indian digital currency which is currently under a pilot project. RBI is constantly monitoring these currencies. Now you may be wondering what digital currency actually is. Since digital currency is a type of digital asset, so are both cryptocurrency and digital currency the same? We will discuss all these in the following article.

digital currency in India symbol ₹

Indian digital currency launch date

The digital rupee will be launched in two phases. The wholesale part of the first Indian digital currency was launched on 1st November 2022, which is a pilot project and RBi is constantly monitoring the currencies.

What is digital currency?

Digital assets are constantly growing across the world. RBI had launched the Indian form of digital currency named the digital rupee or e-Rupee on 1st of November,2022. RBI launched this digital currency for wholesale transaction purposes to monitor digital currency.

Digital Currency or central bank digital currency (CBDC) is a digital asset issued by RBI. Mainly two types of digital currencies will be launched in India, CBDC-R, and CBDC-Wholesale. CBDC-R (Retail) will be available for the common public, while CPDC Wholesale is to be used by selected finance companies and institutions for business purposes. As both physical currencies and digital currency are the same, we would exchange digital currency for physical currency and vice versa.

Overview of Digital Currency

Name of the currencyCentral Bank Digital Currency
Issued ByRBI, Reserve Bank of India
Launched dateNovember 1, 2022
Symbole₹
Payment ModeE-wallet

Indian digital currency names and bank lists

The first digital currency pilot project launched by RBI on November 1 is called Digital Rupee or e-Rupee. This currency is denoted by the symbol e₹. So far 9 banks have been aligned with this pilot project. The names of the banks are:

  • Kotak Mahindra Bank
  • HDFC Bank
  • ICICI Bank
  • IDFC First Bank
  • State Bank of India
  • Yes Bank
  • Bank of Boroda
  • HSBC
  • Union Bank of India.
India's first Digital currency

Digital currency vs cryptocurrency

The following are some forms of digital currencies viz., cryptocurrency, virtual currency, and central bank digital currency. You may get confused between the two since both cryptocurrency and digital currency are digital assets, But both are completely opposite.

Cryptocurrencies are essentially public property that is not monitored by any specific group or government, making cryptocurrencies accessible to all the public. Besides, cryptocurrency prices fluctuate constantly based on the market situation.

On the other hand, Digital currency is issued and regulated by RBI. These currencies will have all the features of physical mudra. People can exchange digital currency for physical money according to their needs. And the value of this digital currency will never increase or decrease.

Digital Currency Benefits

When digital currency will become available to the public, you won’t need to carry cash all the time, maybe the government’s intention is to create a cashless economy. Below we have highlighted some of the benefits of using digital currency.

  • Digital currency will reduce the cost of business. Dealing with bulk transactions will become much easier.
  • Transactions can be done within seconds through mobile wallet.
  • Cheque and NEFT transactions which usage a lot of time but with the help of E Rupi, we would be able to transfer payment within seconds.
  • The number of cases of fake and money tempering cases will decrease.
  • The cost of paper printing to generate physical cash will be greatly reduced.
  • Since CBDC currencies are digital assets there is no possibility of loss or destruction.

Final Takeaway

Since this currency will be monitored by RBI, there will be no possibility of fraud, money laundering, and terrorist financing. Many are speculating that the introduction of digital currency is expected to boost the Indian economy.

FAQ’s digital currency in India

what is the Indian digital currency name?

India’s first-ever digital currency known as Digital Rupee or e-Rupee.

when Indian digital currency was launched?

Central Bank Digital Currency Wholesale was launched on November 1.

Where can I find digital currency latest news?

On this website you will get up-to-date news related to digital currency.

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