In a significant move toward digitising welfare delivery, the government has initiated pilot programs to distribute food subsidies using Central Bank Digital Currencies (CBDCs). The initiative marks a new phase in public finance management, combining monetary innovation with social welfare reform.
The pilot aims to test how a digital version of sovereign currency can improve transparency, reduce systemic leakages, and streamline the distribution of benefits under the public food subsidy framework. Officials believe that integrating CBDCs into welfare payments could modernise the public distribution system (PDS) while strengthening accountability mechanisms.
