Sustainable Digital Currencies: Evaluating Social Equity and Economic Growth in India

The emphasis of this research paper is to dissect how Central Bank Digital Currencies (CBDCs) can help achieve social justice, equalize wealth, and promote economic development in Indian society. This is done by collecting and utilizing secondary data from sources, such as the Reserve Bank of India (RBI), International Monetary Fund (IMF), World Bank, and several scholarly articles which aim to create an extensive overview of the manner in which CBDCs would function in India and contribute toward social and economic advancement in that country. This investigation is thorough going as it utilizes secondary data analysis, sifting available datasets and reports with the aim of evaluating the effect CBDCs have on relevant economic and social variables. The study is faced with several questions that need addressing: How Can Sustainable Digital Currencies Enhance Social Equity in India? What Are the Potential Impacts of CBDCs on Reducing Financial Inequality? How Do CBDCs Contribute to Economic Growth in the Indian Context? What Are the Associated Challenges and Opportunities in Implementing CBDCs in India? How Can the Adoption of CBDCs Be Optimized to Foster a More Inclusive Financial Ecosystem? The research reveals that the planned implementations of CBDCs might increase the level of financial inclusion in the country such that basic and cost-effective financial services are available to the more vulnerable and self-excluded groups in the society. CBDCs would equally contribute to lowering financial inequality due to reduced transaction costs as well as improved efficiency of government welfare assistance programs. In addition, the research indicates that CBDCs would enhance the level of economic progress by increasing the efficiency of financial transactions and bringing the informal economy into the formal economy. It should be noted that the study also highlights the difficulties the central bank will face in the successful implementation of CBDCs in India such as regulatory uncertainty, cybersecurity, and the importance of creating public confidence among CBDC users. The paper also ends with policy and stakeholder recommendations on the respective steps to be taken with regard to CBDC adoption in order to uphold a positive change in the financial structure of the country. This study sheds light on the tremendous and revolutionary potential of CBDCs in the Indian economy and presents a blueprint for action. In the meanwhile, as the government of India is exploring the uses of digital currency for the foreseeable future, this study adds to the discussion on the development of responsible and accountable digital cash and its contribution to improved societal opportunities.