Budget 2022: RBI to issue digital rupee based on blockchain technology in 2022-23, fate of Bitcoin unclear
India Today
Finance Minister Nirmala Sitharaman on Tuesday morning confirmed that Reserve Bank of India will issue digital rupee soon. The digital currency by RBI will be based on blockchain technology.
Finance Minister Nirmala Sitharaman on Tuesday morning confirmed that the Reserve Bank of India will issue a digital rupee soon. The digital currency by RBI will be based on blockchain technology the tech behind Bitcoin and other popular cyrptocurrencies. Digital rupee will be issued by 2022-23, the finance minister said, without providing any clarity on the future of Bitcoin and other crypto tokens.
“Digital currency will also lead to a more efficient and cheaper currency management system. It is therefore proposed to introduce a digital rupee using blockchain and other technologies, to be issued by the Reserve Bank of India, starting 2022-23,” the finance minister said.
RBI had expressed its desire to introduce a digital currency last year. At the time, the government was planning to ban the use of cryptocurrencies in the country. However, things were stalled after a committee was formed to hold talks with major stakeholders and give recommendations on the future of cryptocurrencies in the country.
Later, the draft of crypto bill suggested that the government may still ban all cryptocurrencies in the country to promote a possible digital currency from the RBI.
“To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 read.
The Finance Minister was expected to provide more clarity on the use of cryptocurrency during her Budget presentation. However, there was no mention of Bitcoin or other cryptocurrencies. Instead, crypto tax has been introduced.
Finance Minister Nirmala Sitharaman announced in her Budget 2022 presentation that a new crypto tax will be introduced under which virtual digital assets will be taxed at 30 per cent in the country. She clarified that no set off will be allowed in case of losses. Also, gifts in virtual digital assets would be taxed in the hands of the recipient.
