India to Introduce Digital Currency this Year

Daniel Attoe
Daniel Attoe

Updated · Feb 03, 2022

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The Central Bank of India will issue a “digital rupee” cryptocurrency from the 2022-2023 financial year starting this April.

The Digital Rupee

India will launch a digital version of the nation’s official currency, the rupee, financial minister Nirmala Sitharaman announced on Tuesday. According to the minister, the central bank digital currency (CBDC) will be issued in the coming fiscal year starting April 1.

While there are no finer details, the new digital currency will work “using blockchain and other technologies”.

Sitharaman announced the rupee’s digital iteration while presenting the annual budget.

“Introduction of a central bank digital currency will give a boost, a big boost to the digital economy,”  she said. “Digital currency will also lead to a more efficient and cheaper currency management system.”

In her speech, the minister also outlined plans to tax income from the transfer of digital assets by 30%. However, she made it clear that the incoming digital rupee would not fall under the new taxation rule. 

As More Countries Consider

The Bahamas, Grenada, Saint Kitts and Nevis, Antigua and Barbuda, and Saint Lucia have all fully launched their digital currencies.

China will premier its own CBDC at the Beijing Winter Olympics set to open on the 4th of February. The world’s most popular country has gone the slow and steady route since it first began to work on the currency in 2014. It began digital yuan trials in April 2020 in a bid to improve retail payments.

In April last year, the Bank of Japan announced it had started CBDC trials that will last until this March. The United States Federal Reserve Board released a white paper in January as it seeks to investigate the viability of creating a CBDC.

Sources.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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