The announcements of the new crypto tax regime and launch of Digital Rupee by the Finance Minister, Nirmala Sitharaman while presenting the Union Budget 2022-23 has triggered off a positive buzz in the crypto industry. The government has made a move to tax at 30 per cent “any income from transfer of any virtual digital asset,” specifying that no deductions and exemptions will be allowed. It added that virtual digital asset as gifts will also be taxed in the hands of the recipient.
Mo Akram, Ideator, MetaSpace says, “The 30 per cent tax on income made from crypto transactions is high, but it is also a positive step as it recognises crypto currencies and legitimises it. Remember, the government has come a long way in its stance towards crypto as was seen in the last Union Budget. This, I feel, is a step in right direction to usher in a new era of innovation in India, which will help it grow digitally as well as economically.” He adds, “In fact, the announcement of the Digital Rupee, a central bank digital currency (CBDC), will be a game-changer for the Indian economy in 2022-23. Apart from enabling efficient and cheaper currency circulation, it will be a big win for digital India as well as the adoption of blockchain technology, opening up new doors for innovation, monetary efficiency and a robust economy.”
Agam Chaudhary, Chief Marketing, MetaSpace commented that the introduction of a blockchain-based and RBI-backed CBDC will help pave the way for the future decentralised world, aka Web3.0, and more blockchain innovations. He elaborates, “The concept of money is constantly evolving. There was a time when money existed only in the physical form, but today, we can’t even imagine a world without digital payments. So, it will come as no surprise that at some point in the future, cryptocurrencies will work as money, too. You will be able to buy a coffee or pay for your cab ride using cryptos.”