India’s progress in payment systems will provide a useful backbone to make a state-of-the art central bank digital currency (CBDC) available to its citizens and financial institution. But given its impact on macroeconomic policy making, it is necessary to test comprehensively so that they have minimal impact on monetary policy and the banking system. Discuss.

 

9. India’s progress in payment systems will provide a useful backbone to make a state-of-the art central bank digital currency (CBDC) available to its citizens and financial institution. But given its impact on macroeconomic policy making, it is necessary to test comprehensively so that they have minimal impact on monetary policy and the banking system. Discuss. (250 words)

Reference: Live mint , moneycontrol.com