Digital currency is a payment system which involves digital transactions in electronic form and is not physically tangible like rupee. Digital rupee (e₹) will be used for issuing virtual currency for transactions which can be exchanged for cash, equivalent to the banknotes that central banks like the RBI issue in paper form. The RBI will continue to issue the CBDC, which will serve the same function as banknotes but is not a decentralised asset like cryptocurrency