blockchain<\/a>, which offers distributed ledger technology. On Blockchain, because of the distributed ledger technology, the transactions will be processed at great speed. As a matter of fact, to use e-Rupee, we do not even need a bank account. I had explained above that e-Rupee is like cash in digital form, and when we use cash we simply use it without going to the bank.<\/p>\n![\"\"](\"https:\/\/compudonjunior.in\/wp-content\/uploads\/2022\/11\/eRupee-1-300x146.png\")
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While e-Rupee uses the Blockchain technology but it is very different from cryptocurrency. Unlike cryptocurrency,<\/strong> e-Rupee is issued by India\u2019s Central Bank, the RBI and not by a private player. With cryptocurrency, any private individual can compete to mine and create value in the cryptocurrency but here, since it is issued by RBI, mining is not possible<\/strong>. In crypto, the value is determined by the market forces hence its value always fluctuates, whereas, with e-Rupee, there will not be any change in face value over a period. The biggest fear that lies with cryptocurrency is completely eliminated here. For example, a 2,000 Rupee worth of e-Rupee value will always be worth Rs. 2,000. And since it is issued by the RBI, it is sovereign with a guarantee for its face value.<\/p>\nWhen the e-Rupee becomes available for retail transactions, how do we get it? What we know now is that e-Rupee will be distributed entirely by Commercial Banks and that you do not need to have a bank account with the bank to transact in e-Rupee. It is understood that we will be able to withdraw digital tokens\/ e-Rupee from banks in the similar way as we withdraw physical cash (except that we will not need a bank account to withdraw e-Rupee). We will see specially created electronic wallets for receiving, storing and transferring the digital rupee in the form of electronic tokens.<\/p>\n
Now comes the smart question<\/strong>. Since this will be stored in an electronic wallet, what kind of interest will it offer? \u00a0Sorry, but there won\u2019t be any interest. As mentioned above, digital rupee is just a digital form of physical cash and since physical cash does not bear any interest, e-Rupee will also not bear any interest.<\/p>\nNow, is it mandatory to switch to e-Rupee once RBI launches it for retail transactions? The answer is No. e-Rupee will coexist along with the other forms of digital payments and also along with physical form of rupee like currency notes and coins. There is absolutely no compulsion to convert to e-Rupee.<\/p>\n
So then what are the benefits for switching to e-Rupee?<\/p>\n
\n- The transaction cost with e-Rupee will be much less compared to present day NEFT or RTGS, especially when you are transferring large amounts.<\/li>\n
- The transaction with e-Rupee will be much faster compared to any other digital payment as e-Rupee runs on blockchain technology<\/li>\n
- When the use of digital rupee picks up speed and becomes popular then government can spend less amount on printing and distributing the physical cash.<\/li>\n<\/ol>\n
Let us extend a warm welcome to e-Rupee for wholesale transactions and look forward to welcome the launch of e-Rupee for retail transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"
This is an introductory blog about Digital Rupee. Reserve Bank of India (RBI) launched a pilot project on digital rupee on November 1, 2022 called e-Rupee (e\u20b9). In the first PHASE, it is valid only for the wholesale transactions for enabling large payments and settlements on the purchase and sale of government securities. Next month, […]<\/p>\n","protected":false},"author":4,"featured_media":4685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-4684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"_links":{"self":[{"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/posts\/4684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/comments?post=4684"}],"version-history":[{"count":3,"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/posts\/4684\/revisions"}],"predecessor-version":[{"id":4688,"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/posts\/4684\/revisions\/4688"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/media\/4685"}],"wp:attachment":[{"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/media?parent=4684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/categories?post=4684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/compudonjunior.in\/wp-json\/wp\/v2\/tags?post=4684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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