Fixed denominations vs token system: Why digital cash needs to feel real

If the payment market is cornered by a few powerful private-sector platforms, they may impose hidden charges and fees

Five years ago, central bank digital currencies were a curiosity. Now, they’re a fad. More than 40 economies are running pilots or are in the pretrial development phase, in addition to the 11 already using them. With rising interest, previously unasked questions about these new-age payment tools are starting to emerge. Some sound deceptively easy, but getting the answers right could be crucial. 
 

Start with one such simple query: physical representation. It was an issue that the Reserve Bank of India raised in October, ahead of a retail e-rupee trial that got under way this month. Simply put, there are