The stand on cryptocurrencies is not clear, RBI will launch digital currency, the name will be Digital Rupee.
This made it clear that the government would not block money as real as bitcoin, but whether it will be legal, there is still confusion. The Minister of Finance has made it clear in the budget that the Reserve Bank will bring its own digital currency.
In the regular budget, the Minister of Finance has announced that digital currency will be introduced in India. The finance minister said the Central Bank of India would introduce its own digital currency. The government has said the Reserve Bank will introduce its own digital currency. There were already rumors that the government would take firm action on cryptocurrency. Although the Economic Survey prior to the budget did not say anything about cryptocurrency, but later Chief Economic Adviser Sanjeev Sanyal said the government would take a balanced and firm position on cryptocurrency.
This made it clear that the government would not ban tangible currencies like bitcoin, but even if it was legalized, there would still be confusion. The Minister of Finance has made it clear in the budget that the Reserve Bank will bring its own digital currency, which will be called Digital Rupee.
During the budget, Finance Minister Nirmala Sitharaman said the State Bank would introduce digital currency using blockchain technology. Digital Rupee will be launched in the 2022-23 financial year itself. Digital currency will boost the country’s economy.
Nothing is said in the budget regarding private cryptocurrencies like bitcoin or ethereum. No such statement was also made in the Economic Survey. But it is clear at the government point that there is no cryptocurrency ban yet. The government removed investors’ concerns about taxes. The Minister of Finance made it clear in the budget that 30 percent tax will have to be paid on cryptocurrency trading. Suppose a person has made a 1 lakh bitcoin transaction, he will have to pay a 30 percent tax.
The name of the State Bank’s digital currency will be the CBDC or the Central Bank Digital Currency (CBDC). With the help of this virtual currency, the extra cash can be converted into digital. Then this digital currency can be deposited in banks. This will make retention easier and government costs will also be lower. This work will not be done separately from government because the same amount of money and money will be converted into digital form using Blockcheck technology. It will be called Digital Rupee.
The government also believes that more money should be spent on printing notes and coins. Money is used separately to send it to ATMs and banks etc. If this work is done digitally, the cost will be less when the work is the same. As a result, the government will introduce the CBDC.