The Indian government has revealed it plans to launch a digital rupee in 2023 to deal with the growing demand for digital transactions in the country.
According to ZDNet, the plans for the central bank digital currency (CBDC) – which will use blockchain – was announced alongside a slew of other initiatives by Indian Finance Minister Nirmala Sitharaman during the country’s recent budget.
The new plans are part of the government’s Amrit Kaal blueprint, which is a 25-year digital transformation plan in the lead up to the country celebrating 100 years of independence in 2047.
Sitharaman said that on virtual assets that are not CBDCs – such as cryptocurrencies – would be taxed at a 30% rate even if they are received as a gift. There will be no deductions or offsets for losses in respect to virtual digital assets.
The government has also underlined plans to work with banks to establish 75 digital banking units across 75 districts to help Indian civilians transition towards using digital payments. These units will enable civilians to deposit money into their banking accounts without needed to visit a branch and instead make online payments.
In October 2021, the Central Bank of Nigeria unveiled its CBDC eNaira in its pilot study named Project Giant.
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