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A Central Bank Digital Currency for India?

Author

Listed:
  • Barry Eichengreen

    (University of California, Berkeley)

  • Poonam Gupta

    (National Council of Applied Economic Research)

  • Tim Marple

    (University of California, Berkeley)

Abstract

We review arguments for CBDC issuance in India. These include facilitating payments,enhancing financial inclusion, enabling the central bank and government to retain control of the payments system, facilitating cross-border payments, reducing dependence on the dollardominatedglobal payments system, providing an encompassing platform for digital financial innovation. We then compare progress in India with other countries. In setting an end 2022 target date for issuance, India is in line with the other BRICS, but not with other countries with comparable levels of per capita GDP, which have been more reluctant to commit to a date. Nor is it in line with other countries with comparably independent central banks, which have been more cautious about setting a deadline. Finally, we sketch a roadmap and timeline for India’s CBDC project going forward.

Suggested Citation

  • Barry Eichengreen & Poonam Gupta & Tim Marple, 2022. "A Central Bank Digital Currency for India?," NCAER Working Papers 138, National Council of Applied Economic Research.
    • Handle: RePEc:nca:ncaerw:138
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    File URL: https://www.ncaer.org/publication/a-central-bank-digital-currency-for-india
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    More about this item

    Keywords

    Central Bank; Digital Currency; India; Monetary Systems; Payment Systems;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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