Central Bank Digital Currency and Digital Rupee have become talking points. 


Digital Rupee 


Digital Rupee is a virtual currency that will be issued by the Central Bank i.e RBI. Indian Govt. Planning to opt for Blockchain and other technologies.


In simple words, CBDC will be a digital form of the Indian Rupee. 


Digital Rupee will be like banknotes. Users will be able to transfer amounts into wallets in the form of online tokens. The Digital Rupee could be similar to your NEFT, IMPS, or Digital wallets. You could use Digital Rupee to make retail and wholesale payments. 


Digital Rupee

Unlike the regular rupee, you won’t need a bank account to make the payments as it will be based on Blockchain technology. The sender and recipient can do the transactions using Blockchain and RBI will be the guarantor. 


It will help create a more efficient and cheaper currency management system. The value of the Digital Rupee is equal to the regular rupee. 


Private virtual currencies like Bitcoin, Ethereum, Dogecoin are fundamentally different from the Digital rupee as they will be backed by the state and will have an intrinsic value. Also, Govt considered them not as legal tenders. 


Everything that prevails outside of assets created by individuals and profits made out of transactions of those assets will be taxed at 30% with 1% TDS imposition. Fm clearly said govt will not be taxing the currency that is yet to be issued by RBI. 


Difference Between Digital Rupee and Regular Rupee 


Digital Rupee 

 

  • * You don’t need a bank account to make payments

  • * More efficient and cheaper currency management system

  • * You can carry the amount from your mobile phone

Regular Rupee 

       * You need a bank account to withdraw amount from ATM
* Costlier – as the government prints physical notes
* Need physical wallets to carry