Budget 2022: RBI to issue digital rupee using blockchain in FY23, says FM

The government has also decided to levy 30% tax, the highest tax band in India, on income arising out of digital assets, says FM Sitharaman

To boost the Indian economy, the Reserved Bank of India (RBI) will be issuing a digital rupee using blockchain and other technologies in the Financial Year 2022-23, Finance Minister Nirmala Sitharaman told the Parliament on Tuesday.

"Digital rupee to be issued using blockchain and other technologies; to be issued by RBI starting 2022-23. This will give a big boost to the economy," she said.

Earlier, the Union Cabinet approved the Budget 2022-23 presented by Finance Minister Nirmala Sitharaman in Parliament.

The government has also decided to levy 30% tax, the highest tax band in the country, on income arising out of digital assets, Sitharaman said.

However, losses from sale of digital assets cannot be offset against other income, she added. Industry estimates suggest there are 15 million to 20 million crypto investors in India, with total crypto holdings of around Rs 40,000 crore ($5.37 billion). No official data is available on the size of the Indian crypto market.

Modi government has been mulling tough regulations around digital currencies in India for several months.

RBI has voiced "serious concerns" around private cryptocurrencies on the grounds that these may cause financial instability.

Earlier today, Sitharaman met President Ram Nath Kovind ahead of the Budget presentation. She was accompanied by Ministers of State for Finance Pankaj Chaudhary, Bhagwat Karad and other officials from the Ministry.

Amid the ongoing coronavirus pandemic, replacing her signature 'bahi khata', she opted to carry the documents in a tablet, which was wrapped in a red-coloured cover with the national emblem emblazoned on it.