- Indian Prime Minister Narendra Modi launched a new digital payment method, e-RUPI.
- Wazir X CEO, Nischal Shetty says e-RUPI will allow end-to-end digital transactions without a real-world middleman.
- Personal information is not requested for data security and privacy.
India’s Prime Minister Narendra Modi introduced a new digital payment method called e-RUPI on Monday. The purpose of the digital voucher is to guarantee that the government’s financial advantages directly and impenetrably reach the people. Since the words “digital” and “currency” are combined, many people have speculated that this is a brand-new type of “cryptocurrency.”
However, according to CEO Shetty of Wazir X, it allows for end-to-end digital transactions without the need for a real-world middleman.
Additionally, personal information is not requested for redemptions bodes well for data security and privacy.
Market experts have disproved all of these beliefs. Therefore it is best to avoid comparing the two. Itsblockchain.com CEO Hitesh Malviya advised against equating the recently released digital voucher with cryptocurrency. Financial inclusion of unbanked persons and closing the digital divide are the primary goals and long-term vision of e-RUPI, “Malviya stated.
It makes it possible for the government to offer financial assistance in healthcare, welfare, and medicine.” The action was praised by crypto specialists, who described it as the first step toward accepting “digital currency.” They consider e-RUPI to be a significant step in the direction of a digital economy. Beneficiaries of this new payment system will get an electronic coupon or voucher that may be used in place of traditional payment methods, including checks, money orders, and online banking.
Cryptocurrencies and e-RUPI have the same objective: to reach the unbanked people. However, the strategy is different. “E-RUPI is governed by the government, whereas cryptocurrency is dispersed and a decentralized medium of trade,” explained Malviya. E-RUPI aims to find a leak-proof method of distributing government aid. The experts claim that this answer is already built within cryptocurrencies. According to Shetty, this signals the digitalization of the Indian financial system.