On Tuesday morning, Finance Minister Nirmala Sitharaman confirmed that RBI (Reserve Bank of India) will launch a digital rupee soon. The digital currency by RBI will be based on blockchain technology the tech behind Bitcoin and other famous cryptocurrencies. FM said that the digital rupee will be issued by 2022-23 without offering any clarity on the future of Bitcoin and other crypto tokens.
Nirmala Sitharaman said the digital currency will also lead to a more efficient and cheaper currency management system. Therefore, it is suggested to launch a digital rupee using blockchain and other technologies, to be issued by RBI, starting 2022-23.
The Reserve Bank of India has expressed its desire to launch a digital currency the previous year. At the time, the government was thinking to prohibit the use of cryptos in the nation. However, things were stalled after a committee was formed to hold talks with major stakeholders and propose recommendations on the fate of cryptos in the nation.
Later, the draft of the crypto bill proposed that the government may still prohibit all cryptos in the nation to promote a possible digital currency from the Reserve Bank of India.
FM was supposed to offer more clarity on the use of crypto during her Budget presentation. However, there was no mention of Bitcoin or other cryptos. Rather, crypto tax has been introduced. She, in her Budget 2022 presentation declared that a new cryptocurrency tax will be imposed under which virtual digital assets will be taxed at 30% in the nation. She explained that no set-off will be allowed in case of losses. Also, the tax will be imposed on the gifts in virtual digital assets in the hands of the recipient.