RBI Cryptocurrency Name: Digital Rupee Explained & India’s Crypto Landscape

The Reserve Bank of India (RBI) has been at the forefront of discussions about cryptocurrency regulation in the country. While private cryptocurrencies like Bitcoin face regulatory uncertainty, the RBI has launched its own official digital currency – the Digital Rupee (e₹). This comprehensive guide explores the RBI cryptocurrency name, its implications, and how it differs from decentralized cryptocurrencies.

What is the RBI’s Official Cryptocurrency Called?

The RBI’s sovereign digital currency is officially named the Digital Rupee (e₹). Launched in phases starting December 2022, it represents a Central Bank Digital Currency (CBDC) – a digital form of India’s fiat currency issued and regulated by the Reserve Bank. Unlike private cryptocurrencies, the Digital Rupee holds legal tender status equivalent to physical cash.

RBI’s Stance on Private Cryptocurrencies

The RBI maintains a cautious approach toward private cryptocurrencies like Bitcoin and Ethereum:

Regulatory Concerns: Cited risks including money laundering, terrorism financing, and macroeconomic instability
Historical Resistance: Implemented banking restrictions in 2018 (later overturned by Supreme Court)
Current Position: Advocates for global regulation while developing its own CBDC framework
Taxation: India implemented 30% crypto tax + 1% TDS in 2022, signaling regulatory recognition

3 Key Differences: Digital Rupee vs. Cryptocurrencies

Issuing Authority:
- Digital Rupee: Issued by RBI (centralized)
- Crypto: Decentralized with no central authority
Value Stability:
- Digital Rupee: Pegged 1:1 to Indian Rupee (stable)
- Crypto: Volatile market-driven valuations
Legal Status:
- Digital Rupee: Legal tender with RBI backing
- Crypto: Not legal tender in India (assets subject to tax)

How the Digital Rupee (e₹) Works

The RBI’s CBDC operates through two models:

Retail e₹-R: For public use via digital wallets (P2P/P2M transactions)
Wholesale e₹-W: For interbank settlements

Built on distributed ledger technology, it enables:

Instant settlements without intermediaries
Offline transaction capabilities
Programmable features for targeted subsidies

India’s Crypto Regulation Timeline

2018: RBI bans banks from crypto services
2020: Supreme Court overturns banking ban
2021: Cryptocurrency Bill proposed (not passed)
2022: 30% crypto tax implemented; Digital Rupee pilot launched
2023: RBI pushes for global crypto framework at G20

FAQs: RBI Cryptocurrency Name & Regulations

1. Is Digital Rupee a cryptocurrency?

Technically yes, but it’s a centralized CBDC – fundamentally different from decentralized cryptocurrencies. It uses similar blockchain technology but with RBI control over issuance and governance.

2. Can I invest in RBI’s cryptocurrency?

The Digital Rupee isn’t an investment asset. It’s digital cash for transactions. You can obtain it through authorized banks and use it via RBI’s digital wallet apps.

3. Will RBI ban private cryptocurrencies?

While RBI advocates for prohibition, the final decision rests with Parliament. Current regulations focus on taxation and anti-money laundering compliance rather than an outright ban.

4. How does Digital Rupee benefit users?

Reduced transaction costs
Financial inclusion for unbanked populations
Faster cross-border payments
Enhanced monetary policy implementation

The Future of Digital Currency in India

As the Digital Rupee pilot expands to 15 cities, India is positioning itself at the forefront of CBDC innovation. Meanwhile, global crypto regulation discussions at G20 (chaired by India in 2023) may shape future policies for private cryptocurrencies. The RBI cryptocurrency name – Digital Rupee – signifies not just a payment innovation, but a strategic move to maintain monetary sovereignty in the digital age.

For investors and users, understanding this distinction between sovereign digital currencies and decentralized crypto assets remains crucial as India’s financial landscape evolves.