---
title: "What is a Digital Rupee?"  
description: "What is a Digital Rupee?"  
author: "Sandra Emily"  
published: 2022-05-23  
canonical: https://answers.mindstick.com/qa/97548/what-is-a-digital-rupee  
category: "troubleshooting"  
tags: ["troubleshooting", "digital rupee"]  
reading_time: 1 minute  

---

# What is a Digital Rupee?

What is a [Digital Rupee](https://answers.mindstick.com/qa/97554/how-is-digital-rupee-different-from-upi)?

## Answers

### Answer by Hitesh Vohra

- The digital form of the fiat money, the rupee, is called the **[Digital](https://answers.mindstick.com/qa/97562/is-digital-money-better-than-paper-money) Rupee.**
- Rupee of India It is equivalent to a fiat which is a currency published on paper can be swapped with other fiat currencies
- The legal tender issued in digital form is a central bank digital currency. It's a fiat currency with a distinct form that may be exchanged one-for-one with government-issued money. To put it another way, CBDC is the same as the legal tender you use. It's only that it's available in digital format.
- A CBDC is a digital version of fiat currency that will make transactions more convenient. CBDC was previously described in a paper by the RBI as a 'secure, resilient, and convenient alternative to physical cash.' It can also take on the complicated shape of a financial instrument, according to the RBI report, depending on numerous design decisions.

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**Read More: [Is it legal for Indian to purchase cryptocurrency in the U.S.?](https://answers.mindstick.com/qa/97447/is-it-legal-for-indian-to-purchase-cryptocurrency-in-the-u-s)**


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