Central Bank Digital Currencies (CBDC) as Catalysts for Financial Inclusion and Economic Expansion in Emerging Asian Economies
Akarshi Chopra, Pankaj Dhaundiyal, Abhinav Kataria · 2025
This chapter examines the potential of Central Bank Digital Currencies (CBDCs) to enhance financial inclusion and economic growth in emerging economies. Unlike decentralized cryptocurrencies, CBDCs are government-backed digital currencies that offer secure and regulated alternatives to traditional money. The chapter explores how CBDCs can improve access to financial services, reduce transaction costs, and promote financial stability, particularly in countries with limited banking infrastructure. It also discusses the challenges and risks associated with CBDCs, such as financial stability concerns and the displacement of commercial banks. Through case studies from China and India, the chapter highlights how well-designed CBDCs can act as a catalyst for inclusive economic development, while emphasising the need for robust regulatory frameworks for successful implementation.