---
title: "What is the significance of digital rupee?"  
description: "What is the significance of digital rupee?"  
author: "Sandra Emily"  
published: 2022-05-23  
canonical: https://answers.mindstick.com/qa/97552/what-is-the-significance-of-digital-rupee  
category: "troubleshooting"  
tags: ["troubleshooting", "digital currency"]  
reading_time: 1 minute  

---

# What is the significance of digital rupee?

What is the significance of [digital rupee](https://answers.mindstick.com/qa/97554/how-is-digital-rupee-different-from-upi)?

## Answers

### Answer by Hitesh Vohra

- The establishment of the **Central Bank Digital Currency (CBDC)** will provide India's digital economy a huge boost. 'Central Bank Digital Currency (CBDC) would offer a tremendous boost to the digital economy,' stated Finance Minister Nirmala Sitharaman. Digital currency will also make currency management more efficient and less expensive.
- CBDCs are a safer type of digital money since they are direct liabilities of the central bank, similar to paper cash. This is comparable to a situation in which everyone has a central bank checking account.
- End of paper cash: Because a CBDC unit is a direct central bank liability that is precisely equivalent to paper money rather than simply convertible into it, there will be no need to convert paper money into digital money. People will no longer require cash outlets, and depositing cash and other valuables will be limited.

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**Read More: [Who will issue the digital currency in India?](https://answers.mindstick.com/qa/97551/who-will-issue-the-digital-currency-in-india)**


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