- Definition: E-Rupee is a legal tender issued by a central bank in digital form.
- It is the same as fiat currency, exchangeable one-to-one with cash.
- Only its form is different (digital).
- Differences from Cryptocurrency:
- CBDC is legal tender, cryptocurrency is not.
- CBDC is issued by a central bank, cryptocurrency is decentralized.
- CBDC is backed by the central bank, cryptocurrency value is market-driven.
- CBDC is regulated, cryptocurrency is largely unregulated.