Significance of Digital Currencies in Sustainable Finance and Investment—An Indian Perspective
Sulagna Das · 2024
Digital currencies, including cryptocurrencies and central bank digital currencies (CBDCs), have the potential to revolutionize the financial system and economy. The Indian FinTech sector is expected to dominate the global market by 2030. The Jan Dhan Yojana, Aadhar biometric identity system, and mobile connectivity have significantly boosted financial inclusion and digitization. Central Banks are exploring CBDCs to enhance their economies and payment systems, with 86% researching and 60% experimenting. India is experimenting with the e-Rupee, aiming to reduce cash reliance and strengthen its position as the fifth largest economy and e-commerce market globally. Cryptocurrencies like Ethereum, Ripple, and Bitcoin are popular for their security and inflation resistance, but their environmental impact is becoming more evident. Blockchain technology can reduce fraud and promote sustainable cryptocurrencies, allowing central banks to legitimize public currencies and promote green businesses.