Can e-rupee replace physical cash, or at least cannibalize its market share? It’s true that cash remains king in India even after demonetization and the growing popularity of mobile money platforms. But there may be a crucial difference: the Reserve Bank of India says wallet-to-wallet transactions in digital rupee will remain anonymous. That may well be the game-changer for India’s Central Bank Digital Currency (CBDC). Other forms of mobile money offer no anonymity in digital transactions, leaving a digital trail. Anonymity may help e-rupee emerge as a popular alternative to physical cash, given the convenience in storing it and the deep penetration of mobile phones in India.