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India Finally Launches eRupee ! | Is It a Crypto ?

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India has been planning to launch it's digital currency for a very long time now and it has finally become a reality as India did launched the first pilot project for Digital Rupee on November 1st. It is nothing but a digital form of currency notes issued by the central bank, There is no fundamental difference between the physical notes as the digital Rupee is only a digital form of the currency notes which provides itself being a easier and faster way to transact finances.


What Is Digital Rupee

Digital Rupee is basically the monetary fund which will be used for digital payments. It will be generated using a very advanced payment system which will be quite affordable and very safe too.

Digital Rupee (e₹) is going to be used for issuing the virtual currency but that does not mean it is going to be decentralized like cryptocurrencies, it is going to be regulated by the Reserve Bank Of India (RBI).


Is Digital Rupee A Crypto ?

NO,

the digital rupee technically not a cryptocurrency because there are some very major differences. Firstly cryptos are run on blockchain and also being decentralized but the (e₹) is just a virtual form of the Indian currency banknotes.

Cryptos are assets which can be exchanged for other forms of financial transactions but the (e₹) can only be exchanged for the banknotes of INR.


Why (e₹) got to existence ?

The primary goal of RBI to launch the digital currency is to boost India in the race of virtual currencies as more and more cryptocurrencies are getting popular.

This launch is currently in the Pilot Launch phase where wholesale distribution is going to happen in a planned manner which will later turn out being the Retail launch where normal users will be able to transact with the (e₹) in everyday lives which currently is restricted to nine banks leading the Pilot Wholesale Project in the country.