In the western Indian village of Phulenagar, Samadhan Sonawane set up a drip irrigation system on his small onion farm using digital currency issued directly from the central bank.

The funds come from a pilot program that is part of India¡¯s efforts to boost its e-rupee, a central bank digital currency (CBDC), and tighten its $80 billion welfare payment system, which has historically suffered from corruption and inefficiency.

While India¡¯s early efforts are modest compared with those of China, where more than 200 million people use the e-yuan, the world¡¯s most populous nation ?could in theory become its biggest CBDC issuer if the program gains traction.