• It will give a big boost to digital economy.
  
• Digital currency will also lead to a more efficient and cheaper currency management system.

CBDC

• CBDC is a legal tender issued by a central bank in a digital form. It is similar to a fiat currency issued in paper and is interchangeable with any other fiat currency.
• The Reserve Bank of India will launch the CBDC from the upcoming financial year. This follows the government’s plans to launch the CBDC that will be backed by blockchain technology.

• The Digital Currency will use block chain and other technologies.
  
• The digital rupee will be the digital version of physical cash issued by the RBI and will, therefore, be sovereign backed. 
  
• The digital rupee will be different from Bitcoin, Ethereum and other cryptocurrencies in the sense it will be backed by the government.
• Having an intrinsic value on account of government backing, the digital rupee will be equivalent to holding a physical rupee equivalent.
• It is the same as bitcoin in terms of technology used that is Blockchain technology else it is totally different if we go as per definition of Cryptocurrency.