The Finance Minister, Nirmala Sitharaman, announced that the Reserve Bank of India will issue a digital currency. It will be based on blockchain and other emerging technologies and will begin in fiscal year 2022-23. The central bank’s use of the RBI Digital Rupee, as envisaged in Budget 2022, would result in more efficient and cost-effective currency management.
“By 2022-2023, the Reserve Bank of India will issue digital rupees using blockchain technology and other tools. The economy would significantly benefit as a result, “she stated. The Union Cabinet has already approved Nirmala Sitharaman’s Budget for 2022-23. Additionally, Sitharaman stated that the government has decided to tax digital assets at a rate of 30%, the highest in the country.
However, she continued, losses incurred through the sale of digital assets cannot be offset by other revenue streams. India is estimated to have between 15 million and 20 million cryptocurrency investors. Additionally, with a total value of approximately Rs 40,000 crore ($5.37 billion) in crypto assets. Indian cryptocurrency markets are unregulated.
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The Reserve Bank of India plans to introduce a digital rupee based on blockchain technology in the fiscal year 2022-2023. According to Finance Minister Nirmala Sitharaman, who presided over Tuesday’s presentation of the Union Budget. The Reserve Bank of India intends to use blockchain technology to establish the Central Bank Digital Currency (CBDC). The introduction of a central bank digital currency will significantly boost the digital economy. Additionally, the adoption of digital money will result in a more efficient and cost-effective system for currency management. The Reserve Bank of India is thus proposing to develop a digital rupee beginning in 2022-2023 through the use of blockchain and other technologies,” Sitharaman stated in her Budget address.
National Digital Currencies Are Becoming More Trendy
India joins a growing list of countries considering the establishment of CBDCs. Just one day before India’s announcement, Jamaica’s central bank announced plans to launch a national digital token in the first quarter of 2022, with the goal of lowering transaction costs and providing financial services to citizens who do not currently use banks. Eastern Caribbean countries including Grenada, Saint Lucia, and Antigua and Barbuda launched DCash, a digital currency, in 2021. Japan, China, and the United States have reportedly also considered establishing CBDCs.