India's Digital Rupee: A Revolution in Currency
The Digital Rupee, symbolized as e₹, is a groundbreaking development in India's financial landscape. Issued by the Reserve Bank of India (RBI), the Digital Rupee is a central bank digital currency (CBDC) that leverages blockchain technology. It is a tokenized digital representation of the Indian Rupee and holds the same value as physical currency, with 1 e₹ equating to 1 Rupee. It is regulated by the RBI, and its liability lies with the central bank. Unlike cryptocurrencies, which operate in a regulatory vacuum, the Digital Rupee is a legal tender issued by the RBI. It is exchangeable one-to-one with physical cash, providing a seamless transition between digital and physical currency. Mechanics of Digital Rupee The RBI issues digital rupee tokens to financial entities known as Token Service Providers (TSPs). These TSPs, which include major banks, play a pivotal role in the distribution and management of the Digital Rupee. Users can store their e₹ in digital wallets provided by thes...