India, Feb. 27 -- The Centre yesterday rolled out a central bank digital currency (CBDC)-based pilot for transfer of benefits under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Under the initiative, digital coupons will be credited into the CBDC wallets of beneficiaries. This programmable digital currency can then be only used to redeem the entitled quantity of foodgrains at fair price shops or merchant outlets.

The project is currently only being piloted in Puducherry to a limited number of users, with plans to expand the service across the UT. The Centre plans to expand the initiative to three to four states and union territories (UTs), including Chandigarh and Dadra and Nagar Haveli, "soon".

The government said that it will...