New Delhi, May 3 -- This year's first monetary policy meeting revealed an interesting data point on an emerging monetary product, an element that is bound to influence monetary systems and policies, including global payment systems. Its development has been characterized by caution, and while it is still some distance away from becoming widely accepted, its use-case scenarios present policy and regulatory challenges.

India's central bank digital currency (CBDC), or e-rupee, is finally emerging from the shadows. It is being tested in the domestic economy through managed programmes. But it will face its toughest test as a cross-border payment tool. As many developed and developing economies mount a challenge to dollar dominance, the e-rupe...