With so many players in the finance and crypto market, who threw their hat into the ring? The Indian government. The Reserve Bank of India launched a pilot project on the Central Bank Digital rupee in December 2022 called CBDC: Central Bank Digital Currency.
This would be digital and dematerialized banknotes that's considered convenient, safe, secure and accessible. The goal is said to be complementing physical cash, not replacing them. So, apart from taking out your wallet, using UPI or a card, there's a CBDC option available.
And it's said that India CBDC worth about 16 crore rupees is in circulation, as of March 2023. So, there is some traction.
But, there might be another looming worry: do CBDCs have the potential to give a government increased visibility into a person's financial transactions and track their spending?
