“Although I will argue that the Indian demonetisation was flawed in some respects, the larger picture is that the Indian has done much to promote financial inclusion,” Rogoff said, “The world has much to learn from the Aadhaar ID project. In advanced economies, mandatory biometric identification is not likely given concerns about privacy, but many factors, from cyber crime to terrorism, are likely to change the balance in the coming decade.”
Stating that there were many approaches to reducing the currency supply, Rogoff said his recommendation “is to, very gradually, eliminate large-denomination notes”. “But one can also limit size of cash transactions, tighten reporting requirements on large cash withdrawals… All of this is happening in some countries,” he said. Central banks in Sweden, China, the UK and Canada are discussing the idea of digital currencies.
“Currency continues to evolve but it is naive to think that the governments will ever surrender their monopoly on the unit of account (nor should they),” he said.
Source : timesofindia