One of the primary macroeconomic motivations for the RBI to introduce a retail CBDC is to counter the rising threat of private cryptocurrencies and preserve the sovereignty of the national fiat currency.

Answer: True

The proliferation of private cryptocurrencies poses risks to monetary policy transmission, financial stability, and capital flight. By offering a safe, sovereign-backed digital alternative that leverages modern payment technologies, the central bank can satisfy public demand for digital assets while retaining control over the money supply and the domestic payment ecosystem.