Digital Rupee can be encashed, will strengthen economy, says PM Modi

Digital Rupee can be exchanged for cash! In an virtual press conference held earlier today, Prime Minister Narendra Modi revealed some additional details on India's official cryptocurrency set to launched and managed by the Reserve Bank of India (RBI). Similar to other forms of cryptocurrency, Digital Rupee will also be based on blockchain technology.

"The digital rupee will be the digital form of our physical rupee and will be regulated by the RBI. This will be such a system that will enable exchange of physical currency with digital currency," said PM Modi said at a virtual conference that was attended by BJP members across the country.

Digital Rupee can be encashed

"Central Bank Digital Currency (CBDC) will strengthen the digital economy... If anyone makes a payment in digital currency, you will be able to change it to cash. This will also lead to ease in development of global digital payment systems," he added.

Modi also said that the Digital Rupee currency managed by the Central Bank will make digital payments and online transfer of funds more secure and risk free. Digital Rupee will revolutionise the fintech sector by creating new opportunities and lessen the burden in handling, printing, logistics management of cash, added the Prime Minister.

On February 1, the Union Finance Minister Nirmala Sitharaman also announced a new tax slab on Virtual Digital Assets. Anyone purchasing a virtual digital asset will have to pay a tax of 30 percent. The tax is also applicable for someone who has been gifted the virtual digital asset.

Additionally, the government also confirmed hosting 5G spectrum auction in the year 2022-23. Insider information suggests that the spectrum auction could take place in April 2022, although the government is yet to confirm the dates. Post the spectrum auction, several telecom players in India will be able to deploy their 5G networks.