ABSTRACT
The rapid evolution of digital currencies, driven by advancements in blockchain technology and increasing digitization, presents a transformative opportunity for the Indian economy. This paper explores the critical need for digital currency in India, examining its potential to enhance financial inclusion, reduce transaction costs, promote a cashless society, and bolster security and transparency in financial transactions. It also addresses the challenges and risks associated with digital currency implementation, such as the necessity for a robust regulatory framework, technological infrastructure, public awareness, and the potential for economic disruption. By analyzing the current landscape and future prospects, this paper underscores the importance of strategic planning and collaboration among government bodies, financial institutions, and technology providers. The findings suggest that with careful management, digital currency can significantly contribute to the modernization and growth of the Indian economy, fostering a more inclusive and efficient financial system.
