Digital Rupee is HAPPENING! India's own cryptocurrency to rival Bitcoin

Digital Rupee is happening! On February 1 while announcing the new budget for 2022-23, Union Finance Minister Nirmala Sitharaman confirmed that India is getting a centralised digital currency in the financial year 2022-23. It will be called the “Digital Rupee” and will be based on the blockchain technology. This will help it rival the likes of established cryptocurrency such as Bitcoin, Ethereum, and others.

In the speech, Sitharaman said that the new digital currency will be launched by the Reserve Bank of India (RBI). She also said that Digital Rupee will make for a cheaper and more efficient currency management system in the country. The RBI is already working on a planned implementation strategy, which could begin in 2022 itself. There's no set date for the launch as of now.

Sitharaman also said that the digital currency could allow the country to reduce its dependance on the older cash system.

Digital Rupee coming to India this year

Digital Rupee is said to be based on the blockchain technology, which is the same underlying technology for other cryptocurrency such as Bitcoin, Ethereum, and others. The government hasn't spoken in whether Digital Rupee can be mined and, if so, will it be legal.

India, however, isn't the first country to undergo adopting cryptocurrency for its economy. Earlier, it was China who already started testing its own cryptocurrency in several cities. The US and UK government have also been considering the possibility of having their own cryptocurrency.

“This has been a digital & Growth oriented budget. Although the government has not proposed any bill on crypto, the two regulatory clarifications from the FM has made a lot of things clear for this nascent but booming industry. It is wonderful to know that RBI will introduce the Blockchain powered Digital Currency. This would certainly give an impetus to the participation of institutional players in the blockchain space. Also the announcement of 30% tax on the transfer gains of digital assets is most welcome as it establishes the legitimacy of crypto trading in India. Hoping to see that as the new class of assets finds more traction with the people, cryptocurrencies are recognised and widely adopted as the alternative investment vehicles,” says Jai Prakash, Co-founder and CEO, VRXtream.

Along with Digital Rupee, the Budget 2022-23 also revealed plan for hosting spectrum auctions for 5G networks, which are expected to start deploying from this year or early next year. The government has also imposed taxes on Virtual Digital Asset, which means consumers buying NFTs will need to pay a tax amount of 30 percent.

The budget also confirms ePassports that will have chips embedded inside.