Starting in 2022-23, the Reserve Bank of India (RBI) will issue digital rupees using blockchain and other technologies. This will provide a significant boost to the economy, according to <a href="https://www.cryptoknowmics.com/news/indias-finance-minister-says-cryptocurrency-bill-is-ready-for-the-cabinet/" target="_blank" rel="noopener">FM Nirmala Sitharaman</a>, who presented the Budget 2022. Before the presentation, the Union Cabinet met and approved the Budget 2022-23.

India is not the only country attempting to implement a system of digital legal tender. Various central banks around the world are testing projects like the digital dollar, e-yuan, and digital euro. Sitharaman met President Ram Nath Kovind earlier today, ahead of the Budget presentation. She was accompanied by Ministers of State for Finance Pankaj Chaudhary and Bhagwat Karad, as well as other Ministry officials.
<h2>The Digital Rupee will be Equivalent to a Physical Rupee</h2>
In contrast to Bitcoin, a cryptocurrency based on blockchain technology that allows users to remain anonymous, the <a href="https://www.cryptoknowmics.com/news/only-a-handful-of-cryptocurrencies-will-survive-says-indias-former-rbi-governor/" target="_blank" rel="noopener">RBI</a> will support the official digital currency. The digital rupee is equivalent to a physical rupee in all transactions. The move is seen as a major boost for the government's "Digital India" initiative.  A digital rupee will have the same monetary value as a physical rupee. Nirmala Sitharaman stated: 
<blockquote>"The introduction of central bank digital currency will give a big boost to the digital economy. Digital currency will also be a more cheaper and efficient currency management system. It is therefore proposed to introduce digital rupee - using blockchain and other technologies - to be issued by the Reserve Bank of India, starting 2022-23.”</blockquote>
Meanwhile, the government has announced that any income derived from the transfer of digital assets will be taxed at a 30% rate. This will have an impact on gains from cryptocurrency and NFTs, both of which have seen a recent surge in India. The move coincides with the government's plans to introduce a cryptocurrency Bill that would prohibit "all private cryptocurrencies in India" with "certain exceptions."
<h2>75 Digital Banking Units Will Be Set Up in 75 Districts</h2>
In addition, the Finance Minister announced today that 75 digital banking units will be established in 75 districts. She said that digital banking, digital payments, and fintech innovations have grown rapidly in the country in recent years. The government is constantly encouraging the benefits of digital banking to reach every nook and cranny in a consumer-friendly manner. She added:
<blockquote>"As part of this agenda, and to commemorate the country's 75th anniversary of independence, scheduled commercial banks are being asked to set up 75 digital banking units in 75 districts across the country. Financial support for the digital payment ecosystem, which was announced in the previous budget, will be maintained in 2022-23 as well.” </blockquote>
Experts believe that the new digital currency will result in a more stable, efficient, dependable, regulated, and legal tender-based payment option. However, one must be aware that there are risks involved, which must be carefully weighed against the potential benefits.

Budget 2022: India’s FM Nirmala Sitharaman Announces India is Coming Up With Its Digital Rupee

Starting in 2022-23, the RBI will issue digital rupees using blockchain India's said FM Nirmala Sitharaman, in Budget 2022.

Meghna is a graduate of the Indian Institute of Journalism &amp; New Media specializing in  Print Journalism. She is currently working as a content writer for Agio Support Solutions Pvt. Ltd. She aims to provide quality content and strategy in the field of cryptocurrency and work with digital marketing platforms to deliver brand-specific strategies.

Budget 2022: India’s FM Nirmala Sitharaman Announces India is Coming Up With Its Digital Rupee

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