The Reserve Bank of India (RBI) is aligning its central bank digital currency (CBDC) design with monetary policy objectives and financial stability, the central bank said in its annual report.
- Finance Minister Nirmala Sitharaman announced in February the RBI will be developing a blockchain-based digital rupee.
- India’s Finance Bill, 2022, included an amendment to the RBI Act, 1934, to provide a legal framework for the upcoming digital rupee.
- India has discouraged digital asset investments by imposing a 30% tax on cryptocurrency income, while senior central bank officials have called for a ban on the assets.
- A vibrant and active cryptocurrency ecosystem can present alternative payment methods to a nation’s fiat currency.
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