Daily Management Review

India announces launch of its digital currency from 1 April


India has announced that it will launch its digital currency from 1 April. The digital rupee will be treated like banknotes. The authorities hope that its proliferation will give a big boost to the digital economy.

India's finance minister Nirmala Sitharaman said India's central bank will launch a digital version of the rupee on April 1 when the country begins its new fiscal year, CNBC reported. The digital rupee will be treated like banknotes, TechCrunch specifies. 

The introduction of the digital rupee will give a big boost to the digital economy, the finance minister said. "The digital currency will also lead to a more efficient and cheaper currency management system," she added. Sitharaman did not disclose details on how the digital rupee would work, but said it would be introduced "using blockchain and other technologies".

India will be one of the largest economies in the world to introduce a digital currency from the central bank, CNBC noted.

At the same time, the country's authorities have taken a tougher stance on cryptocurrencies, such as Bitcoin, and are now working to regulate the sector, the channel notes. The finance minister believes that profits from virtual digital assets should be taxed at 30 per cent.

source: cnbc.com