Why the shape of digital rupee will be determined by its use-cases

Experts agree a CBDC will help create a better financial ecosystem, but differ on its design

A day after the budget announcement that the Indian central bank will launch a digital rupee this year, the speculation started pouring in. One report said that India’s central bank digital currency (CBDC) may not be based principally on blockchain technology; another claimed that it might turn out more like a digital payments wallet than digital money.

Everyone agrees that a CBDC will help create a better financial services infrastructure, but there seems to be no single right answer to how it should be designed.

Around the world, some of the biggest criticisms of blockchain-based cryptocurrencies are that they are