There are many differences between Reliance Industries’ new initiative JioCoin and RBI’s Digital Rupee (e₹), and the purpose and use of both are completely different. Here we compare the two and understand their unique features.
JioCoin: Mukesh Ambani’s Blockchain Dream
Reliance Industries subsidiary Jio Platforms has partnered with Polygon Labs, which is a big step to make Web3 and Blockchain technology popular in India. People are discussing about JioCoin on social media and its screenshots are being shared.
The main purpose of JioCoin is:
1. Use of Blockchain and Web3 Technology – To promote advanced technology in India.
2. Investment Options – JioCoin is a cryptocurrency that will provide a potential option of returns for investors.
3. Crypto Market Awareness – To increase awareness and adoption of cryptocurrencies in India.
But, just like every cryptocurrency is risky, JioCoin will also be vulnerable to the effects of market volatility.
Digital Rupee (e₹): RBI’s Digital Payment Solution
Digital Rupee (e₹) is a Central Bank Digital Currency (CBDC) issued by RBI. It is a digital version of the physical rupee and its main focus is:
1. Secure Digital Transactions – To enable safe and fast digital payments.
2. Promote Cashless Economy – To promote the use of e₹ as an alternative to cash.
3. Stable Value – The value of e₹ is equivalent to INR, there is no market risk in it.
e₹ is not an investment product in any way, but a reliable and government-backed currency.
JioCoin vs Digital Rupee: What is different?
1. Cryptocurrency vs Digital Currency:
JioCoin is a cryptocurrency, whose value changes according to market fluctuations.
Digital Rupee is a stable digital currency, which is equivalent to INR.
2. Issuer:
JioCoin will be launched by Jio Platforms.
RBI issues Digital Rupee, which is government-backed.
3. Purpose:
The purpose of JioCoin is to provide investment and returns.
The goal of Digital Rupee is secure and convenient digital payments.
4. Market Risk:
JioCoin will be subject to the volatility of the crypto market.
Digital Rupee is safe and there is no such risk in it.
Conclusion
Both JioCoin and Digital Rupee bring new opportunities for the Indian market, but the scope and use-case of both are different.
JioCoin is more risky, but it has the potential of high returns.
Digital Rupee is a stable and safe option, which will support India’s digital economy.
In the coming time, the launch of JioCoin and its impact will be very interesting for India’s crypto and digital ecosystem. Till then, users should be aware of the risks and rewards of cryptocurrencies.