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
While elaborating about Digital Rupee in Parliament, Nirmala Sitharaman pointed out the use of blockchain regulating it. Blockchain technology means that all its information is being stored in the network of computers. However, cryptocurrencies like Bitcoin spread globally across the system of developers.
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.
Digital Currency Vs Cryptocurrency
1. Digital currencies are centralised and regulated by a single location like banks. But cryptocurrencies are decentralised and governed by many places.
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.