India, April 14 -- Despite being underway for more than two years, India's Central Bank Digital Currency (CBDC) pilot program of the e-rupee (eRs) has largely remained in the shadows. Even though digital currency has seen a significant jump in volume compared to previous years, adoption has been underwhelming, with Rs 1,016 crore in volume in circulation as of March 2025.

This is a sign of retail unpopularity. The reasons can be assessed from multiple arguments. One of them can be presented as being more structural and fundamental than the rest.

India has built the world's second-largest CBDC pilot in a country that already has the world's most successful digital payments system. UPI processed 20 billion transactions worth Rs 25 trillio...