The Reserve Bank of India expressed that, “The e₹-R would offer feThe Reserve Bank of India declared that the retail digital rupee is all set to get commenced from December 1. The big questions are, what is his digital rupee, and how is it different from UPI and Digital currency?
The world of currencies is changing rapidly, with human needs getting more complex and perhaps more interesting than before. History enthusiasts know how earlier, man used to barter for goods to exchange goods. Next came the Mesopotamian phase where people made use of shekels. Gold and silver coins were also in the scene for the purpose of exchange of goods. Next came stamped coins, followed by currency notes.
However complex the history and evolution of money have been, the evolution is not ready to get stopped as yet.
Recently, on Tuesday, the Reserve Bank of India made it official that the retail digital rupee, a pilot for retail central bank digital currency, is all set to grace the timeline of the evolution of money and currencies from December 1.
The Digital Rupee
How will this digital rupee look? How would this get used?
Well, as per the Reserve Bank of India, the digital rupee would come in the form of a digital token representing legal tender.
A digital rupee or a CBDC is a digital kind of currency note/coin issued by the apex bank. The rupee can be made to use in contactless transactions as is done by UPI apps.
How is the digital rupee different from UPI? Digital rupee vs UPI
The answer is simple. Unlike the UPI, the digital rupee is not going to earn any interest like cash. Also, it cannot be converted into other kinds of money, such as deposits with banks.
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