Union Budget 2022: Digital Rupee Based On Blockchain Announced

The Government of India, during the Union Budget 2022 has officially confirmed that it will launch India’s own cryptocurrency, which is likely to be called a “Digital Rupee” by the Reserve Bank of India (RBI). This is great news for those, who have made investments in cryptocurrency as the chances of banning crypto are very slim.

As of now, it is unclear how this digital rupee will work and how it will be issued to users across the country. However, it is confirmed that the digital rupee will be based on the same blockchain technology, identical to some of the prominent cryptocurrencies like Bitcoin and Etherium.

What Is A Cryptocurrency?

Unlike the normal currency, which will have a physical form and be backed by the gold reserved in a bank, a cryptocurrency is a completely digital currency. The value of a cryptocurrency goes up if the number of buyers goes up, and the value depreciates if the number of sellers is more than buyers.

Cryptocurrency is something that is just a digital token and is stored in blockchains, which are hard to hack. Hence, it will be very difficult to tamper or steal it, unless someone gets access to your wallet using the credentials. As of now, there is no information if one will be able to mine the digital rupee in India just like Etherium and Bitcoin.

The government of India embracing digital currency has several advantages. One, it is very easy to manage as it does not involve printing, storing, and transporting, unlike the normal currency. The normal currency can also be destroyed, which completely loses its value and the same is also not applicable for cryptos.

How Much Will The Digital Rupee Cost?

We expect a single digital rupee to cost around Re 1 at the time of launch. If it gets traction, the price of the digital rupee is expected to go up in the coming days. One should be able to buy a digital rupee on platforms like WazirX and other crypto exchange platforms in India and across the world. As there are no boundaries to cryptocurrency, anyone should be able to buy a digital rupee from supported crypto exchange platforms.