Context: Reserve Bank of India (RBI) deputy governor T. Rabi Sankar recently spoke on the possibility of a central bank digital currency (CBDC) for India. The merits of an RBI digital currency outweigh the risks.
Merits of RBI’s CBDC plan
Challenges associated with CBDC plan
Conclusion: Adoption of CBDCs is the only economic development that is happening at a global scale without any historical precedent to fall back on. Thus, it is very important that every aspect of this development is scrutinized before implementation.