Fashionable trends are for social media influencers to follow, not governments. The hype around Central Bank Digital Currencies (CBDCs) or a Digital Rupee in the Indian context, seems to be nothing more than a fashionable idea with no practical use.
As a recent NCAER Working Paper has succinctly put it, “India should take a cautious and gradual approach toward launching a CBDC.”
The simple fact is that most of the advantages a CBDC could provide are already in place in India, thanks in no small part to the government’s own efforts.
The NCAER paper, authored by Barry Eichengreen, Poonam Gupta
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