10 Fascinating Facts About eRupee (The Digital Rupee)

CBDC is a digital version of Fiat money that is controlled by the Central bank of the Country. It is expected to work as traditional fiat money in digital form.

It is currently available as an invite based and running in pilot mode with a few banks as mentioned at the start of this post. If you already have an invite then you will have to use Digital Rupee Wallet provided by SBI, YES, ICICI, and IDFC banks and connect your bank account to the wallet to load the amount.

eRupee (e₹) will be issued and controlled by the Country’s Central Bank i.e. RBI.

Know more: How eRupee works?

The digital rupee (e-Rupee) is like a digital version of the regular rupee or is a digital form of traditional Fiat currency. Fiat currencies are like the Indian rupee, the US dollar, the British pound, and the euro.

No, Bitcoin is a cryptocurrency based on Blockchain technology and not backed by any government or single organizational entity.

Not at all. Bitcoin and other cryptocurrencies don’t have any of the characteristics of real currency. They don’t have any inherent value, aren’t backed by assets and aren’t issued by a trusted central authority like the Reserve Bank of India.

Whereas, as mentioned earlier, the e-Rupee is just like regular currency, but in digital form. It has value as it represents a claim on the Reserve Bank’s balance sheet. So, there you have it, plain and simple.

Yes, The digital rupee is like a digital version of the regular rupee and it’s built on blockchain technology. It’s a fancy way of saying that it’s super efficient and you can see all the transactions that happen with it. So no more shady business.

No, eRupee is a digital version of paper currency issued and centralized by RBI while Cryptocurrency is decentralized and also a form of digital currency.

One could say, eRupee is RBI’s accepted form of cryptocurrency which will be controlled and issued by them only.

eRupee (CBDC) is a digital form of currency and will be based on blockchain technology but it will not be decentralized like cryptocurrencies.

There are currently 87 countries that have CBDCs and 5 out of them have already launched their digital currency fully or in pilot mode at least. Those countries are India, China, the USA, the Bahamas, and Nigeria.

Right now only four banks are allowed to utilize the pilot mode of eRupee and their Digital Wallet can be downloaded from Play Store for Android and App Store for iPhone.

It is going to co-exist with other forms of currency as there is a huge number of people who don’t use digital payment or don’t know how to use it and rely on fiat cash.

Once you have access to a specifically designed Digital Wallet app for eRupee or CBDC, then you will be able to connect your bank account to it and transfer the amount.

According to the Gov Press release, the CBDC will not earn any interest and can be converted to other forms of money, like deposits with banks.

No, UPI is simply a digital platform for making seamless transactions between two people. UPI is neither a fiat currency nor a digital currency.