India is extremely important in the digital asset revolution. The digital rupee is scheduled to roll out in 2022/23, which is surprisingly fast. Since the Indian financial system is essentially highly digitized already, not sure how it all fits in the UPI payments system yet.
community Response: Digital rupee = less corruption = more efficient economy = more GDP growth. That is the story line I see that has the biggest impact. Also exposes the risk to adoption for the same reasons/incentives.
CBDCs would help with cross border payments. Within India UPI is enough.
Taxation is the first step towards acceptance. Let’s see what kind of regulations will come in coming months and how this will fit in with RBI upcoming digital rupee.
About India taxing 30% on crypto, it just feels like it is great news? Some of them have to say that this is a step in the right direction. Taxation of Virtual Digital Assets or crypto is a step in the right direction. It gives a lot of clarity. India’s focus on digital innovation and promotion of blockchain is welcomed by many.
However, those who wish the taxes could be lower were like: “It just looks like when more users participate, the more pressure we can build on government and the better chances we will see these taxes get lowered. It’s for the first time and not the final time. So, getting taxed is the start of it.”
Some of them feel that 30% tax on virtual digital assets is not a great news. They are left wondering how the government will consider the date of deposit, what they will do about crypto to crypto-internal transactions and a whole lot of stuff.
With India announcing its own CBDC – Digital Rupee, the guess is that it’ll be a new PoA blockchain with mandatory KYC.
They will have to use a private chain like quorum where there are no fees to the users and also the contracts etc. are hidden so they can mint as many as they want.
Crypto is similar to share trade nothing special. The 30% tax is headless decision Who needs RBI digital currency? Headless committee makes a pathetic decision. And, Indian exchange scammers are welcoming 30% tax so that they can loot Indians in joint hands with government legally.
Some expect to see a restructure in tax policy for digital currency next year. The expectation is that with RBI launching new digital coin next year, more people will understand the concept and this can mean less corruption and more development.
Taxation is good for crypto, but it should treat cryptocurrency trading as an asset and investment, and not as a Gambling and Lottery. There need to be a proper Slab system and the net profit should be Taxed.
Get the latest Crypto & Blockchain News in your inbox.