Scaling Up CBDC Adoption in India: The Role of Banks and Fintechs
Banks and fintech companies are key to increasing the use of India's central bank digital currency (CBDC), the e-rupee. Recently, fintech firms have received approval to offer e-rupee wallets, expanding access to digital currency. To encourage adoption, these firms are developing practical applications such as government-backed direct benefit transfers, targeted subsidies, and cross-border remittances. The Reserve Bank of India (RBI) is enhancing the e-rupee's features, including offline transactions and integration with the Unified Payments Interface (UPI). Despite these efforts, daily retail CBDC transactions remain low compared to the target. To boost usage, banks are offering incentives like cash-backs and reward points for e-rupee transactions. Public sector banks have also contributed by onboarding customers and merchants, processing thousands of transactions daily. However, achieving widespread adoption remains a challenge. Globally, CBDCs are gaining attention, wit...
