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.