Stable Rupee, Wild Crypto: An Economic Showdown

By NEETI DARAPURKAR

Money can't be only seen as coins and notes anymore as it's going through a digital overturn. On one side we have cryptocurrencies such as Bitcoin and Ethereum which are created privately and which are loved by the public. On the other hand the government also stepped up creating their own version of currency called Central Bank Digital Currencies (CBDCs) launched by the Reserve Bank of India (RBI). India's very own Digital Rupee. Both exist online, but when it comes to how they’re designed?, How stable are they? And  what do they mean for the economy? , the Digital Rupee and cryptocurrencies are worlds apart.

Now let's see what's the difference between the two in various aspects. Firstly made and guaranteed by the RBI , Digital Rupee is official money just like cash but in a digital form. While cryptocurrencies created by private individuals or groups aren't backed by the government, their  value depends on how many people want to buy and sell them.

The value of the digital rupee never goes down. Whereas, in cryptocurrencies the price keeps jumping - sometimes very high, sometimes very low. Digital Rupee can be fully trusted as it is regulated and issued by RBI and as crypto is not controlled by any government , it is harder to regulate and also risky for users.

Digital Rupee is easy, low-cost, and instant for daily use, and in the future, it could also simplify sending money abroad. Cryptocurrencies can be fast for payments, including international transfers, but often costly and risky.

In short,

the Digital Rupee is meant to be safe money for daily life, while cryptocurrencies work more like high-risk investments or experiments in digital finance.