Cryptic no more: Cryptocurrencies, CBDC may get to coexist

economictimes.indiatimes.com:

Budget has for the time being treated cryptos as ‘digital assets’ by proposing to tax the gains from crypto trading — though at a stiff rate of 30%, like lottery prize money. The central bank digital currency (CBDC) — the digital form of the fiat currency bills in your wallets — can quicken transactions and dramatically transform payments with instantaneous settlement. It would be faster and cheaper than other modes of payment like RTGS, IMPS or UPI. Cryptos, however, will not be treated as currency but may survive as assets. Not only would crypto profits be taxed at double the rate than short-term stock gains, 1% would be deducted as tax at source from the proceeds of sale of cryptocurrency.

Did you Know?

Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs

«Taxing does not automatically bring legitimacy,» said finance minister Nirmala Sitharaman during a select media interaction. The minister said the government would decide on it after the consultation process is over. «Crypto currency has become generic for anything using blockchain technology. Currency is only when an authority issues. Every individual cannot be mining currency. I cannot be sitting at home and mining currency. Is it not illicit? Currency cannot be