#Budget2022: RBI to issue digital rupee this year, says Sitharaman
Union Finance Minister Nirmala Sitharaman on Tuesday (February 1) announced that the Reserve Bank of India (RBI) will introduce digital rupee this year. The announcement was made as part of her presentation of the Union Budget for 2022-2023 in the Lok Sabha. She said the digital rupee issued by the central bank will use blockchain technology.
'A big boost to the digital economy'
"The introduction of central bank digital currency will give a big boost to the digital economy. Digital currency will also be a cheaper and more efficient currency management system," Sitharaman told the Parliament on Tuesday. "It is therefore proposed to introduce digital rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India, starting FY 2022-23," she added.
Centre earlier briefed Parliament about digital currency
Last year, the central government had told the Parliament that the RBI was working on a phased implementation strategy for introducing Central Bank Digital Currency (CBDC). The RBI has already moved a proposal, seeking to amend the RBI Act, 1934 so that the scope of the definition of bank note can be widened to include currency in digital form.
Crypto tax to be introduced
Notably, blockchain is the same technology on which Bitcoin and other cryptocurrencies are based. But little clarity was provided on the future of cryptocurrency in India during Tuesday's speech. Sitharaman, however, said a new crypto tax will be introduced, under which virtual digital assets would be taxed at 30%. Further, the tax on gifts in virtual digital assets would be borne by the recipient.
Sitharaman's fourth Budget presentation
Tuesday marked the fourth Union Budget presentation by Sitharaman. A made-in-India tablet was used instead of the traditional Bahi Khata for the second straight year. "This budget seeks to lay the foundation and a blueprint to steer the economy over 'Amrit Kaal' of the next 25 years from India at 75 to India at 100," the FM said while presenting the Budget.
