RBI expected to launch digital rupee in FY23; what you need to know?

There is an important development regarding digital Rupee. The Reserve Bank of India (RBI) is expected to launch its digital currency in the upcoming fiscal year.

RBI's digital Rupee will be based on blockchain technology. In this context, it must be noted that the US President Joe Biden has also spoken about the launch of digital Dollar and regulation of the cryptocurrency market.

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Though there is not much development on the cryptocurrency bill in India, it is expected that the digital Rupee will be launched in the upcoming fiscal year.

While presenting the Union Budget 2022-23, Finance Minister Nirmala Sitharaman announced that the Reserve Bank of India (RBI) will launch digital rupee during this year. The FM further noted that this would give a big boost to the economy.

As per an ANI report on February 4, 2022, while speaking with the news agency, a senior finance ministry official said, "If you buy something from a shopkeeper and pay through digital money and that digital money is used to pay his vendor by shopkeeper, RBI will have all the data of transaction done with the digital rupee."

The official pointed out that black money proceeds are usually received in cash from underground economic activity and, as such, are not taxed. However, if RBI has the transaction trail of every digital rupee then it will be difficult for a person to evade taxes.