India to launch central bank digital currency on April 2

According to news on February 3, after years of wavering stance on digital currency, Indian Finance Minister Sitharaman said on February 1 local time that India plans to launch a central bank digital currency in fiscal year 2023, which starts in April this year.

Sitharaman said that the government decided to impose a 30% tax on income from digital assets, hoping to use the high tax rate to effectively eliminate uncertainty about the legal status of cryptocurrency transactions.

It is reported that India, which is heavily dependent on cash, wants to use cryptocurrencies to improve transaction efficiency, and the upcoming digital rupee will help achieve cheaper and more efficient currency management.

So far, India does not have any laws regulating cryptocurrency transactions, but that has not stopped millions of Indians from joining the wave of global demand for digital assets. The industry statistics report shows that in the year ending June 2021, the market share of local cryptocurrencies has soared by 641%.