Digital Money in the Indian Context: An In-depth Exploration of its Evolution, Implications, and Future Prospects within the Framework of Central Bank Digital Currency

Abstract

This study conducts a thorough investigation of digital Money in the distinctive context of India, clarifying its development, consequences, and future possibilities, specifically in relation to Central Bank Digital Currency (CBDC), analyzing its potential in the Indian context, its crucial role in the current digital revolution, and the advantages it offers to our country, enterprises, and various user groups.The study proposes aligning our economy with the ongoing digital transition in the global technology scene. In an intangible domain characterized by inexorable advancement, the shift towards a digital economy becomes essential to enhancing our worldwide position. This research, conducted as an exploratory study, utilizes ideas derived from current literature, case studies, books, and electronic resources. this comprehensive approach offers a clear understanding of key aspects of digital money, such as the idea of blockchain, its many forms and sectors, including wholesale and retail, and the examination of real-world applications in different nations. The study examines investigating phenomena such as initial coin offers (ICOs) and the revolutionary possibilities of Central Bank Digital Currency (CBDC) and examines important literature issued by the Reserve Bank of India, the Bank of England, and existing works on centrally backed currency, as well as by the Bank for International Settlements (BIS). The data is enhanced through documentary analysis. The article concludes with a detailed and thoughtful discussion, providing valuable ideas and outlining potential future paths. As a result, it is essential to thoroughly categorize user groups for virtual currencies, especially those that have central bank support. this study provides a comprehensive grasp of the complex processes surrounding digital money and its potential to revolutionize the Indian socio-economic system. It is a significant resource for policymakers, industry experts, and researchers.