Understanding CBDC and Cryptocurrency in the Indian Context
Hence, for understanding the impact thereof, a distinction between CBDC and cryptocurrency is necessary. For instance, a CBDC, which in this context can be said to be India’s Digital Rupee, is basically a fiat currency in digital form but has been issued and is being governed by the RBI. It actually enjoys the same value, trust, and regulatory support as hard cash. Cryptocurrencies, on the other hand, operate on decentralized networks like blockchain without direct government control. Their value fluctuates according to market demand, global adoption, and investor interest.
