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RBI to introduce Digital Rupee using blockchain starting 2022 23

RBI to introduce Digital Rupee using blockchain starting 2022-23

RBI to introduce Digital Rupee using blockchain starting 2022-23
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By CNBCTV18.com Feb 1, 2022 2:32:29 PM IST (Updated)

FM Nirmala Sitharaman announced that the Reserve Bank of India (RBI) will issue a Digital Rupee using blockchain and other technologies starting 2022-23. This will give a boost to the economy, FM Sitharaman in her budget speech.

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"Introduction of Central Bank Digital Currency (CBDC) will give a big boost to the digital economy," Sitharaman said adding that "digital currency will also lead to a more efficient and cheaper currency management system."
Meanwhile, Sitharaman also announced levying a 30 percent tax on crypto gains. She said while computing such income, no deduction can be incurred, except the cost of acquisition. Investors cannot set off the losses from the transfer of cryptos or other digital assets against any other income, she added.

“India is finally on the path to legitimising the crypto sector in India. It’s phenomenal news that India is launching a blockchain-powered Digital Rupee. This move will pave the way for crypto adoption and put India in the front seat of innovation,” Nischal Shetty, Founder and CEO, WazirX told CNBC-TV18.
“It is also interesting to note how our government is beginning to recognise crypto as an emerging asset class given how our FM was referring to it as a virtual digital asset,” Shetty added. However, he said, the biggest development was clarity on crypto taxation.
Further, Sitharaman proposed a TDS of 1 percent on the transfer of digital assets. Moreover, gifts in the form of the virtual digital asset will also be taxed in the hands of the recipient, she added.
“This (Crypto taxation) will add the much-needed recognition to the crypto ecosystem of India. We also hope this development removes any ambiguity for banks, and they can provide financial services to the crypto industry,” Shetty added.
Sitharaman said in recent years, digital banking, digital payments, and fintech innovations have grown at a rapid pace in the country and the government is encouraging these sectors to ensure the benefits of digital banking reach every order of the country.
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