Digital Currency in India: The first pilot for retail use of digital rupee or electronic rupee will begin on December 1, according to a statement from the Reserve Bank of India (RBI) on Tuesday. To begin with, RBI has partnered with four banks State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank of major metropolitan cities. According to the RBI, the pilot will initially be applicable only to closed user groups (CUGs), which will include participating consumers and retailers.
In her Budget 2022 speech on February 1, Finance Minister Nirmala Sitharaman confirmed the issuance of digital Rupee will be based on blockchain and other technologies. However, she has not made any announcements regarding the ban or the legality of other cryptocurrencies.
The introduction of Central Bank Digital Currency will boost the digital economy.
Central Bank Digital Currency Operation – Retail Pilot (e₹-R)https://t.co/Coh632lCwU
— Reserve Bank of India (@RBI)
November 29, 2022
This announcement comes at a time when demand for cryptocurrencies such as Bitcoin, Dogecoin and Ripple is increasing.
What is Digital Rupee?
Digital Rupee is the digital version of fiat currency– Indian Rupee. It is similar to a fiat currency issued on paper and is interchangeable with any other fiat currency.
Digital Rupee: All you need to know
Who will issue the Digital Rupee and when?
Digital Rupee will be issued by the Reserve Bank of India (RBI) this financial year. “Therefore, the proposal to introduce a digital rupee using blockchain and other technologies will be issued by the Reserve Bank of India, starting from 2022-23,” Finance Minister Nirmala Sitharaman said. FM Sitharaman said.
Also read | CBDC in India: What is a Central Bank Digital Currency (CBDC)?
What is the importance of Digital Rupee?
With the advent of Central Bank Digital Currency (CBDC), India’s digital economy will grow significantly. “Central Bank Digital Currency (CBDC) will give a major boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system,” said FM Sitharaman.
Earlier in October 2021, the Reserve Bank of India (RBI) had received approval to amend the Reserve Bank of India Act, 1934 to enhance the scope of the definition of ‘banknote’ to include currency in digital form.
How much tax will be levied on cryptocurrencies?
Finance Minister Nirmala Sitharaman further announced the introduction of a new cryptocurrency tax, under which virtual digital assets will be taxed at 30% in the country.
Furthermore, no offsets will be allowed in case of losses, and gifts of virtual digital assets will be taxed in the hands of the recipient. 1% TDS is recommended for asset class transactions above a certain threshold.
Also, Read | RBI on Cryptocurrency in India: What does the central bank’s latest circular on cryptocurrency mean?
Test your knowledge about Digital Rupee with this GK quiz.
Categories: Optical Illusion
Source: pagasa.edu.vn