Abstract Central Bank Digital Currency (CBDC) is a digital form of money introduced to make financial transactions faster, safer, and more efficient. It aims to reduce cash dependency, lower transaction costs, and promote financial inclusion. However, challenges such as cybersecurity risks, digital literacy gaps, and privacy concerns must be addressed through strong regulations, advanced security measures, and public awareness programs. With proper implementation, CBDC can transform India's financial system, supporting a secure and cashless digital economy.Furthermore, the integration of blockchain technology ensures security and decentralization, fostering trust in digital payments. The rise of digital currency influences monetary policies, banking structures, and global trade dynamics, positioning India as a leader in fintech innovation. This paper explores the impact of India's digital currency on economic growth, financial stability, and evolving market trends. The study also examines potential challenges, including regulatory frameworks, cybersecurity risks, and the digital divide.
Shelke et al. (2026) studied this question.