How India's Digital Rupee Works And What It Means For You

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India is leading a digital payments revolution, with UPI making cashless transactions common across the country

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The Reserve Bank of India (RBI) is launching a Central Bank Digital Currency (CBDC) called the Digital Rupee

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The Digital Rupee, or e₹, is a tokenised digital version of the Indian Rupee issued by RBI

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It is built using blockchain technology, functioning as a means, measure, and store of value

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The RBI plans to launch the Digital Rupee in retail (e₹-R) and wholesale (e₹-W) forms

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e₹-R is for everyday transactions by businesses and households, while e₹-W targets financial institutions

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The Digital Rupee offers cost savings, reducing the need for physical currency printing and intermediaries

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Privacy concerns and the digital divide are potential drawbacks of the Digital Rupee's widespread adoption

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Unlike cryptocurrencies, the Digital Rupee is regulated by RBI, offering transparency but lacking anonymity

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Over 134 countries are exploring CBDC implementation, with China and India already launching their versions

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