India’s Digital Currency Push Targets its Leaky Welfare System (Reuters)
Reuters published an article that I was quoted in, on how India is using its e‑rupee central bank digital currency (CBDC) in targeted pilots to tighten welfare delivery, especially for farm subsidies and subsidized food, by programming funds so they can only be spent at approved vendors, which reduces leakage and upfront costs for low‑income beneficiaries but also raises concerns about over‑controlling “programmable” money and deterring wider adoption compared with more cash‑like designs. [Reuters]
FYI I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.
