What is E-Rupee , how to use it and what is difference between E-Rupee and Bitcoin

Introduction of E-Rupee:

The e-rupee is an electronic or digital form of the Indian currency (INR). It represents a virtual representation of the physical currency that is used as a digital transaction. The e-rupee is designed to take advantage of advancements in technology and provides secure transactions to the digital world. The main purpose of the e-rupee is expected to promote financial services accessible to the wider population including those who do not have access to traditional banking services.

E-Rupee wallet ll Digital currency

 

The e-rupee implementation and regulation are overseen by the Reserve Bank of India (RBI. The RBI ensures the security of digital currency are necessary guidelines and framework for its usage. Digitizing the aim of the e-rupee offers several benefits over traditional cash transactions. It provides individuals and businesses with the ability to make instant and hassle-free payments through the various digital platforms and payment systems this includes methods such as online banking, mobile wallets, and other electronic payment methods.

What is the digital rupee?

There is no specific digital currency called the "digital rupee" in India. However, I can provide you with information about the broader concept of digital currency or digital money.

Digital currency refers to any form of money or medium of exchange that exists electronically or digitally. It is typically based on computer code and relies on cryptographic techniques to secure transactions and control the creation of new units. Digital currencies can be decentralized, such as cryptocurrencies like Bitcoin and Ethereum, or centralized, such as digital versions of existing fiat currencies issued by central banks.

Digital currency 

The Reserve Bank of India (RBI) has been exploring the possibility of introducing a central bank digital currency (CBDC), or digital rupee. A CBDC is a digital form of a country's fiat currency issued by the central bank and regulated by the government. It would be a legal tender and have the same value as the physical currency.

The introduction of a digital rupee could potentially offer benefits such as faster and more secure transactions, increased financial inclusion, reduced costs, and improved monetary policy implementation. It could also provide the government with more visibility into the flow of money and enable better regulation and oversight.

How to use E-rupee?

There are follow steps to use E-rupee are as under:

Set up an E-Rupee Wallet: Start by creating an E-Rupee digital wallet. You can download the official E-Rupee wallet application from the authorized platform or official website bank.

Account Registration:

Once you have downloaded the E-Rupee wallet app, register your account by providing the required= information. This may include your name, email address, phone number, and any other necessary details.

Verify Your Identity:

To ensure security and privacy process, you may need to complete a verification process. This could involve submitting identification documents, such as a valid ID card or passport, and sometimes undergoing a face verification or biometric scan.

Add Funds:

Once your account is set up and verified, you can add funds to your E-Rupee wallet. You can link your bank account, debit card, or credit card to transfer money into your E-Rupee wallet. You may also have the other option to receive an E-Rupee as a form of payment from others.

Add money from phone to wallet

Explore the Wallet Features:

E-rupee wallet offered various features. This could include options are sending and receiving money, making online payments, paying bills, or purchasing goods and services from authorized merchants.

Ensure Security:

To safeguard your E-Rupee wallet by setting up strong passwords, enabling two-factor authentication if available, and regularly updating your app to the latest version. Be cautious of spam or suspicious links and only transact with trusted parties.

Stay Informed:

Keep yourself updated on the latest developments and regulations regarding E-Rupee. Stay informed about any changes in policies, security measures, or additional features introduced by the E-Rupee platform.

Remember, the exact steps and procedures may vary depending on the specific E-Rupee service provider or country. It's advisable to refer to the official documentation or seek assistance from the E-Rupee platform's customer support for detailed instructions tailored to your specific situation.

 

What is the difference between digital rupee and Bitcoin?

E-Rupee and Bitcoin are two different digital currencies with fundamental differences in their underlying technology. Here are some key differences between E-Rupee and Bitcoin

DECENTRALIZED CONTROL CURRENCY

Centralized vs. Decentralized Control:

E-rupee is a centralized digital currency typically issued and controlled by a central bank or government. It operates within a centralized financial system and its value is tied to the national currency. The center has the authority to maintain, issue, and regulation over the E-rupee. Bitcoin is decentralized, operating on a peer-to-peer network without any central authority. Bitcoin is managed collectively by its users. The decentralized nature of Bitcoin provides increased autonomy and eliminates the need for intermediaries like banks.

Backing and Value:

E-rupee is usually backed by the national currency and its value is directly linked to the value of normal currency. The central bank or government ensures the stability of the value of the e-rupee to the national currency. Bitcoin is not any physical asset and its value is determined by market forces, primarily based on supply and demand dynamics. Bitcoin’s value can be subject to high due to factors such as market speculation, adoption rates, regulatory changes, and macroeconomic events.

Transparency and Privacy:

E-rupee transactions are typically recorded and monitored by the central authority or financial transaction involved in the payment process. Bitcoin transactions operate on a ledger called the blockchain which records all the transactions in a transparent manner. Bitcoin transactions are visible to

anyone on the blockchain network, but the user’s identities are pseudonymous (using a name that is not their real name), identify under the wallet's unique addresses rather than personal information. This aspect provides certain privacy to Bitcoin users.

Regulation and Legal Status:

E-Rupee is recognized as legal tender within the issuing country and is widely accepted by merchants and businesses operating within the jurisdiction. Its usage and regulations are governed by the government or central bank.

On the other hand, Bitcoin operates in the regulatory grey area in many jurisdictions. It is considered legal in most countries, but it is not generally prohibited. In India, the Reserve Bank of India as well as the government and Financial Minister of the country said that cryptocurrency is illegal but there is no certain ban on it.

Scalability and Transaction Speed:

E-rupee transactions are processed with the existing financial infrastructure which may offer faster speed and scalability depending on the technology of the system.

Bitcoin transactions, due to the decentralized nature and design of blockchain can be slower and have limitations in terms of scalability. The original Bitcoin blockchain has a limited block size and resulting in a low number of transactions on the blockchain in the Bitcoin network.

In conclusion, both the e-rupee and bitcoin are digital currencies they differ significantly in terms of centralization, control backing, transparency, scalability, regulation, etc. E-rupee operates within a centralized framework and it is equal to the national currency. Bitcoin is decentralized and it has not any central centralized framework it operates on a global scale without any central authority and its value demands on the market demand and supply dynamics.