Journal Press India^®

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In this study explores the potential impacts of introducing a Central Bank Digital Currency (CBDC) in the Indian economy, analysing its benefits and associated risks. CBDCs have garnered international attention as a solution to address limitations in privately-run electronic financial systems. Several countries have already launched or are planning to launch their CBDCs. Recently, the Reserve Bank of India has initiated pilot programs for CBDCs in the wholesale and retail sectors. Implementing CBDC could significantly improve financial stability, reinforce monetary policies, and foster financial inclusion in India. However, it is essential to establish a clear regulatory framework that can effectively accommodate both private virtual currencies and a sovereign digital currency, given the current uncertain regulatory landscape surrounding private virtual currencies in the country.

Keywords

RBI, Money creation, Digital rupee, Monetary policy, CBDC

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