You may have heard of the digital rupee and cryptocurrency, but what's the difference? And which one should you invest in?
The digital rupee is a currency that will be used exclusively in India. It is based on the Indian rupee and can be used to pay for goods and services online. Cryptocurrency, on the other hand, is a digital or virtual currency that uses cryptography to secure its transactions and control the creation of new units.
So which one should you invest in? It all comes down to your personal preferences and what you're hoping to achieve with your investment. If you're looking for a currency that can be used exclusively in India, then the digital rupee is the best option. If you're interested in cryptocurrency more generally, then there are a wide variety of options to choose from.
What Is a Digital Rupee?
Let's start with the basics—what is a digital rupee?
A digital rupee is a digital currency that is pegged to the Indian rupee. In other words, 1 digital rupee is equal to 1 Indian rupee. This means that you can exchange digital rupees for Indian rupees and vice versa and that the value of each will remain the same.
The key difference between a digital rupee and other cryptocurrencies, like Bitcoin, is that a digital rupee is backed by the government. This means that it's a more stable currency and that it's less likely to fluctuate in value.
How will the digital rupee work?
You might have heard about the "digital rupee" or Central Bank Digital Currency (CBDC) lately. But what exactly is it?
Simply put, the digital rupee is currency notes that the central bank has issued in digital form. That means they're not physical bills, but rather electronic units that you can use to make payments online or withdraw from ATMs.
The digital rupee is an RBI-approved legal tender in a digital form and will be exchangeable at par with existing currencies. In other words, if you have digital rupees, you can exchange them for physical rupees, dollars, euros, etc., at any time.
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