ELI5: Explain Like I'm 5

Digital rupee

Alright, imagine you want to buy something, like a toy, and you usually give money to the person selling the toy. But now, instead of using actual coins or paper money, we have another way to give and receive money called digital rupee.

Digital rupee is like a special type of money that only exists inside computers or phones. Just like how you use a password to open your toy app on your tablet, you can also use a password to access your digital rupees. This password keeps your digital rupees safe and only lets you use them.

When you want to buy a toy using digital rupees, you can have a special app on your phone or tablet that helps you do that. The app is like a little helper in your phone that connects to your digital rupee account. It helps you see how much digital rupees you have, just like when you count your actual coins or money.

To buy a toy with digital rupees, you can give the seller the digital rupees through this special app on your device. Instead of handing them coins or paper money, you will just type in a number on the special app and send it to the seller. It's like sending a message, but this message is actually digital rupees.

Now, you might be wondering, "How do these digital rupees come into existence?" Well, just like how your parents or guardians give you pocket money, the people who take care of digital rupees can give them to you. They might be called banks or the government.

People who take care of digital rupees also keep a special record, like a list, of how much digital rupees everyone has. This list is stored on computers, just like how you save your drawings in a folder on your computer. This list helps to make sure nobody can cheat or use more digital rupees than they actually have.

Digital rupees can be very useful because you can use them to buy things online, just like how you watch your favorite cartoons on your tablet. You can also use them to send money to your friends or family, even if they are far away. It's like sending a virtual gift!

However, just like how you have to be careful with your special app on your tablet, you also have to be careful with your digital rupees. Always keep your password safe and only use your digital rupees on trusted websites or with people you know.

So, digital rupee is a special kind of money that exists only inside computers or phones. It's like coins or paper money, but it's digital. You can use it to buy things and send money to others, and it's all handled by special apps and computers.