India set to launch its own digital currency, tax crypto assets

India’s central bank plans to launch the digital version of the rupee in the coming fiscal year, according to Indian finance minister. The 2022-2023 financial year of India will begin on April 1.

“Introduction of a central bank digital currency will give a boost, a big boost to the digital economy,” Nirmala Sitharaman said while delivering India’s annual budget. “Digital currency will also lead to a more efficient and cheaper currency management system.”

The minister did not give any technical details about the currency but said it will involve block chain and other technologies.

If India launches its digital currency, it will become one of the world’s largest economies to implement Central Bank Digital Currency (CBDC).

India’s decision comes after China began CBDC experiments in different cities. The United States and the Bank of England are exploring the prospects for their own economies.

Nirmala Sitharaman also said that India will impose a tax of 30% on income from cryptocurrencies and other digital assets.