Atlantic Council CBDC Tracker

The Atlantic Council CBDC Tracker is a globally recognised analytical tool that monitors the development, pilot implementation and adoption of central bank digital currencies (CBDCs) across countries. Developed by the Atlantic Council’s GeoEconomics Center, the tracker provides systematic, up-to-date insights into how central banks are responding to the rapid digitalisation of money and payments. Its relevance to banking, finance and the Indian economy is particularly significant, given India’s large-scale digital payments ecosystem, strong central banking framework and growing influence in global financial governance.
CBDCs represent a fundamental shift in the nature of sovereign money, blending traditional central bank authority with digital infrastructure. The CBDC Tracker situates India within this global transformation, allowing comparative assessment of its progress, policy choices and implications for the domestic and international financial system.

Background and Purpose of the CBDC Tracker

The Atlantic Council launched the CBDC Tracker to address the accelerating global interest in digital currencies issued by central banks. The rise of cryptocurrencies, private stablecoins and digital payment platforms prompted central banks to explore sovereign digital alternatives that preserve monetary stability while enhancing efficiency.
The tracker classifies countries according to stages of CBDC development, including:

• Research and conceptual study
• Proof of concept and pilot projects
• Limited or nationwide launch

By presenting standardised indicators, the CBDC Tracker enables policymakers, researchers and financial institutions to understand trends, risks and opportunities associated with digital sovereign money.

CBDCs in Global Banking and Finance

From a banking and finance perspective, CBDCs have the potential to reshape monetary systems. The Atlantic Council’s tracker analyses CBDCs not merely as technological tools but as instruments with wide-ranging implications for financial intermediation, payment systems and cross-border finance.
Key banking and financial dimensions examined include:

• Impact on commercial banks’ deposit bases
• Changes in payment settlement and clearing mechanisms
• Monetary policy transmission and interest rate control
• Financial stability and systemic risk

The tracker highlights how different design choices, such as retail versus wholesale CBDCs, influence the role of banks and financial markets.

India’s Position in the Atlantic Council CBDC Tracker

India features prominently in the CBDC Tracker as one of the major emerging economies actively piloting a central bank digital currency. The Reserve Bank of India (RBI) initiated pilots for both retail (e₹-Retail) and wholesale (e₹-Wholesale) CBDCs, reflecting a cautious but comprehensive approach.
India is categorised as a country in the advanced pilot stage, demonstrating:

• Strong institutional capacity through the RBI
• Integration with an already digitised payments ecosystem
• Gradual, risk-managed experimentation

The tracker places India alongside other major economies, allowing comparison with China’s digital yuan, the European Central Bank’s digital euro initiative and pilots in countries such as Brazil and Singapore.

Implications for the Indian Banking Sector

The Atlantic Council CBDC Tracker underscores the transformative implications of India’s CBDC for the banking sector. Indian banks operate within a diverse ecosystem comprising public sector banks, private banks, cooperative institutions and non-banking financial companies.
Key banking-related implications include:

• Potential disintermediation risks if retail CBDCs substitute bank deposits
• New operational roles for banks as distribution and onboarding agents
• Enhanced settlement efficiency in interbank transactions through wholesale CBDCs
• Improved transparency and reduction of settlement risk

The tracker highlights India’s two-tier CBDC model, where banks remain central to customer interaction, as a strategy to preserve financial stability while embracing innovation.

CBDCs and Monetary Policy in India

One of the central themes in the CBDC Tracker is the impact of digital currencies on monetary policy. In the Indian context, the RBI’s mandate of price stability and growth-supportive policy shapes CBDC design choices.
The tracker analyses how India’s CBDC could:

• Strengthen monetary policy transmission through programmable features
• Improve real-time monitoring of liquidity conditions
• Support targeted policy interventions in times of stress

At the same time, it notes the RBI’s cautious stance on features such as interest-bearing CBDCs, reflecting concerns about excessive disruption to the banking system.

Financial Inclusion and Digital Public Infrastructure

The Atlantic Council CBDC Tracker places strong emphasis on financial inclusion, an area of particular relevance to India. India has already achieved significant progress through digital public infrastructure such as Aadhaar, Unified Payments Interface (UPI) and Jan Dhan accounts.
In relation to India, the tracker highlights:

• CBDCs as a complementary tool rather than a replacement for existing systems
• Potential to reach underserved populations without reliable internet access through offline functionality
• Reduction in cash-handling costs and leakage in welfare payments

India’s CBDC experiments are viewed as an extension of its broader digital governance model, rather than an isolated monetary innovation.

Cross-Border Payments and Global Finance

The CBDC Tracker also examines the role of CBDCs in improving cross-border payments, which are often slow, costly and opaque. For India, a major recipient of remittances and an increasingly important trading nation, this dimension is especially significant.
The Atlantic Council’s analysis notes:

• Potential for CBDCs to reduce remittance costs
• Scope for bilateral and multilateral CBDC corridors
• Strategic importance of interoperability standards

India’s participation in international discussions on cross-border CBDC frameworks positions it as a key stakeholder in shaping future global payment architecture.

Regulatory and Governance Challenges

The Atlantic Council CBDC Tracker does not present CBDCs as risk-free innovations. It identifies regulatory, legal and governance challenges that are particularly relevant for large democracies like India.
These challenges include:

• Data privacy and surveillance concerns
• Cybersecurity and operational resilience
• Legal tender status and consumer protection
• Coordination between central bank, government and financial regulators

India’s approach, as reflected in the tracker, emphasises incremental deployment and extensive testing to mitigate these risks.

Strategic Significance for the Indian Economy

From a broader economic perspective, the Atlantic Council CBDC Tracker frames India’s CBDC initiative as part of its long-term development and strategic objectives. A well-designed CBDC could support economic formalisation, reduce transaction costs and enhance trust in digital finance.
The tracker links CBDC development to:

• Strengthening India’s financial sovereignty
• Reducing dependence on private or foreign payment platforms
• Enhancing resilience against external financial shocks