Lagatar24 Desk
New Delhi, Feb 14: Union Finance Minister Nirmala Sitharaman said on Monday that talks with the Reserve Bank over a central bank-backed digital currency are ongoing and that a decision will be made after due thought.
In her Budget speech on February 1, Sitharaman said that the RBI would issue the Digital Rupee, also known as the Central Bank Digital Currency (CBDC), in the coming fiscal year. She also stated that beginning April 1, the government will apply a 30% tax on gains made from any other private digital assets.
Sitharaman said the central bank and the government are on board with digital currencies in response to questions after speaking to the RBI’s Central Board of Directors on Monday.
She stated that conversations with the RBI over the CBDC began before the Budget announcement and are still ongoing.
RBI Governor Shaktikanta Das noted that, like several other concerns, this one is being discussed internally by the RBI and the government.
“Whatever points we have we discuss with the government,” he added.
Das stated last week that the central bank is not in a hurry and is thoroughly studying all elements before implementing the CBDC.
CBDC is a digital or virtual currency, although it differs from the private virtual currencies and cryptocurrencies that have exploded in popularity over the previous decade. Because there is no issuer, private virtual currencies do not represent any person’s debt or liabilities. They aren’t money, and they aren’t even close to becoming a currency.
