A Central Bank Digital Currency for India?

A Central Bank Digital Currency for India?

We review arguments for CBDC issuance in India. These include facilitating payments, enhancing financial inclusion, enabling the central bank and government to retain control of the payments system, facilitating cross-border payments, reducing dependence on the dollar-dominated global payments system, providing an encompassing platform for digital financial innovation.  We then compare progress in India with other countries.  In setting an end 2022 target date for issuance, India is in line with the other BRICS, but not with other countries with comparable levels of per capita GDP, which have been more reluctant to commit to a date.  Nor is it in line with other countries with comparably independent central banks, which have been more cautious about setting a deadline.  Finally, we sketch a roadmap and timeline for India’s CBDC project going forward.

Publication

  • 14804A Central Bank Digital Currency for India?

    We review arguments for CBDC issuance in India. These include facilitating payments, enhancing financial inclusion, enabling the central bank and government to retain control of the payments system, facilitating cross-border payments, reducing dependence on the dollar-dominated global payments system, providing an encompassing platform for digital financial innovation.  We then compare progress in India with other...   Read More

Researchers

  • 8811A Central Bank Digital Currency for India?

    Barry Eichengreen is George C. Pardee and Helen N. Pardee Chair and Distinguished Professor of Economics and Professor of Political Science at the University of California, Berkeley, where he has taught since 1987. He is a Research Associate of the National Bureau of Economic Research (Cambridge, Massachusetts) and Research Fellow of the Centre for Economic...   Read More

  • 288A Central Bank Digital Currency for India?

    Poonam Gupta is the Director General of NCAER, and a member of the Economic Advisory Council to the Prime Minister of India. Before joining NCAER, she was the Lead Economist for Global Macro and Market Research at the International Finance Corporation and a Lead Economist for India at the World Bank. Prior to that, she was the Reserve...   Read More