How India's Digital Rupee will work
e-RUPI
E-rupee is a cashless or to say digital payment system. This will be available to the beneficiaries in the form of SMS string or QR code. It will be like a gift voucher. No credit or debit card is required to redeem it. It will be redeemed even without mobile app or internet banking.
It can be used exactly like a cash transaction. Yes, it will not have a physical interface. You will get digital currency from Reserve Bank. You can send it to whomever you want to transfer. This currency will neither go to any wallet nor to any bank account. The process is like cash, but will be digital. There will be no intermediary bank or any other wallet in between.
How Digital Rupee Will Be Different From Cryptocurrency
Bitcoin was launched as a cryptocurrency only in the year 2009. With the passage of time, many cryptocurrencies like Ether, Dogecoin, WazirX came in the market. Investment in it also started in the last few years and grew rapidly.
But, cryptocurrency is absolutely private. Not under government monitoring. Anonymous people are investing. At times, claims are also made that people involved in terrorist activities or illegally transacting money are using it. Its value is also not stable and there is always a fear that when government agencies will take action on it.
The digital rupee will be monitored by the central banks of the countries rain pipe. If India's central bank is the Reserve Bank, then e-RUPI will remain under its supervision. There is no concern about security with this. Then there is no limit on the quantity. It is being claimed that the value of one rupee coin and digital rupee will be equal.
How to believe that digital payments have increased worldwide?
A report by World Pay and FIS states that about 40% of e-commerce payments in India were made through digital wallets.
Talking about Britain, the share of banknotes in payments will be about 91% in the coming 7 years.
In Sweden, 50% of retailers will stop taking cash payments in the next 4 years.
In South Korea, 96% of payments are going cashless.