Digital rupee will spur adoption of cryptocurrencies, says industry

business-standard.com:

The Budget’s move to tax gains made on crypto transactions by investors at 30 per cent has come as a respite for the country’s crypto start-ups. This is because there had been fears that the government could ban virtual assets, which is now out of the equation, said founders of start-ups dealing in virtual assets.

Moreover, the announcement by finance minister Nirmala Sitharaman that the Reserve Bank of India (RBI) is going to come out with a digital rupee later this year is an encouraging signal. This will lead to a wider understanding and adoption of virtual assets in the country, according to industry experts.

“A 30 per cent tax on income from virtual digital assets, while high, is a positive step as it legitimises crypto currencies. It also hints at an optimistic sentiment towards further acceptance of crypto and non-fungible tokens or NFTs across stakeholders in the country.

The government has come a long way in its stance towards crypto from last February. We are confident that this will herald a new era of growth and innovation for India in the Web 3.0 world,” said Avinash Shekhar, chief executive officer (CEO) of crypto platform ZebPay.

“The announcement on the launch of a digital rupee using blockchain will familiarise Indians with the benefits and efficiency of virtual currency. It will build an appetite for crypto, blockchain, the multitudes of innovation and employment opportunities that these technologies are capable of fostering,” he added.

According to Nischal Shetty, CEO and co-founder of crypto exchange WazirX, many banks in the country had been unwelcoming towards settling transactions made on crypto platforms. “This is bound to change now as the banks were unclear whether the government may abruptly