Impact of Centralized Blockchain Digital Currency (CBDC): For Financial Inclusion and Sustainability

Abstract

Purpose: A central bank Digital currency or Digital rupee  or  e-Rupee is a legal tender  digital form backed by  sovereign currency attributed to  Nobel  laureate James Tobin economist In the year 1980, more than 105  countries were  exploring CBDC among 50 countries in the advance phase of   digital currency (as per NASCUS  tracker) to  create an environment for a cashless economy with the  Government owned Blockchain Distributed ledge Technology (DLT) along Conventional  centrally  controlled  database  structure of Digital  Public infrastructure  of  India Stack technology-driven  and  5G digital revolution and innovation to close the gaps in Financial  innovation and  the  financial inclusion, Government of India and RBI has  made   provision  in the legal framework  in the  RBI ACT 1934, Banking Regulation Act 1949, Finance Act, 2022, The coinage Act,2011, FEMA Act 1999, Information Technology Act, 2000 and  Payment  and Settlement  Act,2007 to  expand access to financial services and cashless economy with  blockchain technology $1.1 trillion has impact on Indian  GDP. RBI has created a Retail transaction in P2P, P2M and wholesale transactions in the secondary market including commercial papers, corporate bonds, and deposit certificates. In contrast, retail transactions stood at 2.73 cores and wholesale CBDC transactions stood at 1329. The tokenization of global illiquid assets is estimated to be$16 a trillion-business opportunity by 2030 (BCG analysis) for the payment system of token-based and account-based for sustainable prosperities and Five C ‘s FI CBDC approach has created a wide range of Financial Inclusion and to achieve Sustainability Development Goals.

Methodology: The research draws upon secondary data from publications such as journals, magazines, websites, and periodicals, in addition to a review of previous conceptual and empirical studies to assess the paper's objectives.

Result/Analysis: The implementation of the RBI's CBDC has a substantial impact on reaching the SDGs. It increases prospects for FinTech entrepreneurs while lowering operational expenses as compared to traditional money systems.

Originality/Value: The study’s significant contribution of 5 C's Approach towards CBDC.

Social Implications: The research article will create more insight into digital currency and Financial Inclusion.

Type of Research: Descriptive Analysis.