What is Central Bank Digital Currency (CBDC)? Discuss the policy implications of introducing it in India.
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What is CBDC?
A Central Bank Digital Currency (CBDC) is a digital form of currency created by a country’s central bank. Unlike cryptocurrencies such as Bitcoin, which are decentralized and unregulated by governments, a CBDC is a digital replica of a country’s official currency (such as the Indian rupee) that is regulated by the central bank.