India & China spearhead CBDC adoption, focusing on financial inclusion & stability: CFA Institute survey
With the rising momentum of the CBDC revolution, the survey findings suggest that India and China are set to play pivotal roles in shaping the future of digital currencies.
Highlights
- India and China are leading the charge of CBDC revolution, reveals a recent global survey
- This growing enthusiasm can be attributed to the pursuit of financial inclusion and stability in these economies
A recent global survey conducted by the CFA Institute on central bank digital currencies (CBDCs) has unveiled a remarkable surge of interest in adopting CBDCs, with India and China leading the charge. According to the 'Global Survey on Central Bank Digital Currencies,' 42 percent of respondents worldwide showed support for central banks introducing CBDCs, with the Asia-Pacific region displaying the highest receptivity to this digital innovation.
India and China at the forefront of CBDC adoption
The survey revealed that the Asia-Pacific region, particularly India and China, has shown significant interest in CBDCs, with 66 percent and 70 percent of respondents in favour of launching CBDCs in India and China, respectively. This growing enthusiasm can be attributed to the pursuit of financial inclusion and stability in these economies.
A peek at the CBDC initiatives in India and China
In India, the CBDC initiative, eRupee, has been undergoing pilot testing since December 2022. The Reserve Bank of India (RBI) is actively collaborating with multiple lenders and retailers to explore the practical applications of the eRupee. The RBI's plan to enable CBDC payments using the existing Unified Payments Interface (UPI) QR codes aims to pave the way for seamless adoption and integration into the existing financial system.
China's CBDC, e-CNY, has already seen implementation in various cities. The Chinese government has been diligently testing its use cases, including salary payments for government employees and gifting e-CNY on special occasions. This proactive approach is helping China position itself at the forefront of CBDC adoption.
Enhancing financial inclusion and improving services
The survey indicated that the primary motivation behind exploring CBDCs was to facilitate faster payments and transfers, a pressing need in today's digital age. Various financial institutions, including asset management firms, investment firms, brokerage firms, commercial banks, IT firms, and insurance providers, have expressed favorable views toward CBDCs. They believe that these digital currencies could potentially enhance financial inclusion and improve the efficiency of financial services.
