Cryptocurrencies and CBDC may Coexist

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Cryptocurrencies and CBDC may Coexist
02 Feb 2022
4 min read

News Synopsis

With the Union Budget introducing the first-ever digital currency, ‘Digital Rupee’ in India the possibility of having acceptance for cryptocurrencies in India. The crypto like Bitcoin and Ethereum can be heavily taxed but will not be banned immediately. The cryptocurrencies will coexist with the RBI-backed ‘digital rupee’ to be launched in FY23. Both will be powered by the same technology, blockchain. 

The Reserve Bank of India will come up with the digital currency and it has to be driven by the central bank as well. The finance minister, Nirmala Sitaraman has said that it is yet not confirmed of the ban was off the table. The central banks have been exploring the CBDCs since 2019.

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