India is stepping into the digital age as it prepares to launch the digital rupee, an official cryptocurrency designed to function like regular money, though with some upgrades like real-time transaction tracking and heightened security. Trade Minister Piyush Goyal insists this is not just a coin-collecting gimmick but a serious move backed by the Reserve Bank of India to foster stability and build trust.
While not explicitly banned, private cryptocurrencies face steep taxation, effectively discouraging widespread use. Indian traders pay a flat 30% tax on profits, plus an additional 1% transaction tax on amounts over $112. According to Goyal, this is a sensible way to shield citizens from crypto risks, seen as a risky entity in India, best left untouched.
That said, India has not imposed an outright ban. In fact, a parliamentary committee has come out in favor of setting clear regulatory frameworks. Some policy thinkers have even suggested establishing a strategic BTC reserve. How that fits alongside the vision for the digital rupee remains to be seen, but Indian politics always finds room for a surprise twist.
