Central Bank Digital Currency As An Instrument For Green Banking: Probing The Role Of CBDCs In Promoting Green Banking
- IJLLR Journal
- 18 hours ago
- 1 min read
Ananya, B.A.LL.B. (H.), Department of Law, Quantum University, Roorkee
ABSTRACT
There has been a significant ‘Paradigm Shift’ at the global stage, with majorly all the global actors recognizing the need of and acting towards achieving Sustainability in all the possible spheres and by taking relative steps and measures. Banking is also one of those spheres or areas. Green Banking has emerged as a significant tool for promoting sustainable finance and now the current scenario is witnessing the emerging role of Central Bank Digital Currencies (CBDCs) in Green Banking. Both the Green Banking and CBDCs have an interrelated dynamics or relationship. Leading towards Sustainable Development and for the accomplishment of Sustainable Development Goals (SDGs), specifically SDG 12 (Responsible Consumption and Production), SDG 13(Climate Action) and SDG 7(Affordable and Clean Energy) which are related to the concepts of green finance and promoting sustainable banking practices, CBDCs play a very significant role. This study provides an insight into the role CBDCs play in promoting Green Banking.
Keywords: Sustainability, Sustainable Development, Sustainable Development Goals (SDGs), Green Banking, Digital Transactions, Central Bank Digital Currency (CBDC), Bank for International Settlements (BIS), International Monetary Fund (IMF), e-Rupee.
