Difference Between Digital Rupee and Crypto currency
The Digital rupee is controlled by the central bank RBI, while cryptocurrencies are decentralised and not controlled by any single entity.
Digital Rupee used for transactions and accounting in a country while Cryptocurrencies used for peer-to-peer transactions, investments, and DApps.
CBDCs, like India's Digital Rupee (₹), are regulated digital currencies issued by central banks, unlike Decentralised cryptocurrencies such as Bitcoin.
Cryptocurrencies such as Bitcoin and Ethereum are ineligible for tax exemptions, in contrast to RBI's Digital Rupee, which is exempt from tax regulations according to experts.
The digital rupee might be legal tender, whereas cryptocurrencies will not be treated as legal tender in India at any time in the near future.