Indian Finance Minister Nirmala Sitharaman said she expects the central bank to launch its own digital currency this year.
Regarding the legalization of bitcoin and other digital currencies, he said that the government is not inclined to take a position just yet. It has set in motion a consultation process, and when it is over, the government will look at the insights generated before taking a position, he clarified.
India’s CBDC Plans on Track
Speaking at the annual summit of India Global Forum, Sitharaman, while answering a question about CBDC, said that RBI is designing it and she expects it to come out this year.
“It was a conscious call in consultation with the central bank – the Reserve Bank of India. We want them to design it the way they want to do it, but this year we expect the currency to come out of the central bank itself,” she said. said.
The Indian finance minister appeared upbeat about the prospects of a central bank-sponsored digital currency making payments and banking transactions easier and more efficient.
“We see clear benefits in a central bank-operated digital currency, because in this day and age, bulk payments between countries, large transactions between institutions and large transactions between each country’s central banks are all better enabled with digital currency. ,” He said. said.
Government sees revenue in crypto
Sitharaman responded to widespread doubts about the government’s move to tax crypto transactions without making them legal. He said that many Indians see a bright future in digital assets; So, the executives underlined the potential for revenue in the industry, she said with a touch of sarcasm.
It clarified that the government does not want to legalize, ban or regulate cryptocurrencies at this stage. She said consultations are underway, and officials don’t want to overlook any legal requirement. The government will state its stance on crypto after the consultation is over and it has given adequate consideration to the outcome.
Taxes and Advertising Regulations for the Indian Crypto Sector
Instead of the much-awaited crypto bill, the Indian government brought in a tax regime for the crypto sector in February through the 2022-23 annual budget proposals. It imposed a 30% tax on digital asset profits and 1% tax on such transactions.
The officials also said that the central bank will launch its CBDC in the coming financial year (2022-23). Later, the Indian finance minister said that the government and the central bank – the Reserve Bank of India (RBI) – are on the same page on CBDC and crypto legalization issues.
Soon, the Advertising Standards Council of India (ASCI), the self-regulatory body of the Indian advertising industry, came up with a guideline for ads in the crypto sector. It said that all advertisements for such exchanges, businesses and NFTs must have a disclaimer that states: “Crypto products and NFTs are unregulated and can be highly risky. There can be no regulatory recourse for any loss arising from such transactions.”
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