Union Budget 2022: Announcement of Blockchain based Digital Rupee
As of now, it is not clear how this Digital Rupee will work and how it will be released to users across the country. However, it has been confirmed that the Digital Rupee will be based on the same blockchain technology that works with some of the major cryptocurrencies like Bitcoin and Ethereum.
What is cryptocurrency?
Unlike normal currency, which will have a physical form and be backed by gold reserves in banks, a cryptocurrency is a completely digital currency. The value of a cryptocurrency increases if the number of buyers increases, and decreases in value if the number of sellers exceeds the buyers.
Cryptocurrency is something that is just a digital token and is stored in the blockchain, which is difficult to hack. Therefore, it will be very difficult to tamper or steal it, unless someone accesses your wallet using the credentials. As of now, there is no information on whether one will be able to mine Digital Rupee like Ethereum and Bitcoin in India.
There are many advantages of adopting Digital Currency of the Government of India. One, it is very easy to manage as it does not involve printing, store and transport unlike normal currency. Normal currency can also be destroyed, which completely loses its value and the same does not apply for crypto.
What will be the cost of Digital Rupee?
We expect a Digital Rupee to cost around Re 1 at launch. If it gets a transaction, then the price of the digital rupee is expected to increase in the coming days. One should be able to buy Digital Rupee on platforms like WazirX and other crypto exchange platforms in India and around the world.