India will have its Own Digital Currency Soon, says Finance Minister

Digital Currency

While presenting the Union Budget 2022, Finance Minister Nirmala Sitharaman announced that India’s digital rupee will be issued using blockchain and other technologies by RBI in 2022-23.

India will join the other nations that are launching their own blockchain currency. The government is going to collect 30% tax on any income from the transfer of any virtual digital assets.

“Digital currency will also lead to a more efficient and cheaper currency management system,” Nirmala Sitharaman said.

“Introduction of CBDC (Central Bank Digital Currency) has the potential to provide significant benefits, such as reduced dependency cash, higher seigniorage due to lower transaction costs, reduced settlement risk. There are also associated risks which need to be carefully evaluated against the potential benefit,” said the Minister of State Pankaj Chaudhary.