What Differentiate RBI’s Digital Rupee With Bitcoin and Other Cryptocurrencies?

Everyone is comparing the Digital Rupee with Bitcoin ever since our Finance Minister Nirmala Sitharaman announced it in Parliament. But is it really a cryptocurrency just like Bitcoin? Because the digital Rupee does not match Bitcoin or any other cryptocurrency in any aspect.

Scroll down and know about the major things that differentiate them.

Difference Between Digital Rupee And Bitcoin

Digital Rupee will only be issued and distributed by the RBI, which means it is not decentralised in nature. Most of the cryptocurrencies are decentralised and inside networks are governed by the majority of the community. So we can say that it is not a cryptocurrency like Bitcoin, it's a digital currency.

Also Read: Know Everything About New Tax Rules On Cryptocurrency Investments

Digital Currency Vs Cryptocurrency

2. We cannot choose the address of the wallet and see money transactions in Digital currencies. They are not transparent and keep all the information confidential. However, cryptocurrency comes with whole transparency. Users can easily check all the information regarding transactions.

3. Digital currencies are regulated by central authorities and very reliable to trust. You can easily file any complaint here. But cryptocurrencies are regulated by several communities that can’t be trusted.

4. Most digital currencies have some legal framework. But there is no legal framework for cryptocurrencies.

We hope this information will enhance your knowledge.

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