This fiat currency would act as a more efficient, low-cost, and secure replacement for cash, thereby creating a better enabler for financial inclusion. And, considering the recent developments in the CBDC landscape, now is the appropriate time to accelerate India’s CBDC efforts, particularly from a geopolitical point of view.
While the rest of the world is all hands on deck tackling the coronavirus pandemic, China has made a powerful move that might significantly strengthen its geopolitical influence in the global financial space. The country is all set to roll out its Central Bank Digital Currency (CBDC) termed Digital Currency or Electronic Payments (DC/EP), making the People’s Bank of China (PBoC) the first major central bank in the world to do so. According to a recent report, China has started pilots for its CBDC in four cities but the official date of the launch has not yet been revealed