Enhancing Privacy Measures for CBDC
The Reserve Bank of India (RBI) is actively seeking technological solutions to address privacy concerns related to central bank digital currency (CBDC). An undisclosed source knowledgeable about the government’s CBDC initiatives disclosed that India is progressing cautiously in the realm of CBDCs.
“A privacy legislation is not the only way. Other ways to tackle this problem – particularly technology – do exist, and our team is exploring that,” the official shared.
The central bank is particularly interested in resolving privacy issues associated with the digital rupee, emphasizing the importance of robust security measures to safeguard user information.
Impact of Taxation on Crypto Landscape
Despite the ongoing advancements in CBDCs, the RBI has clarified that crypto taxation falls under the jurisdiction of legislation and is the government’s exclusive responsibility. Recently, the Indian budget session maintained the existing crypto tax deducted at source (TDS) policy, which imposes a 30% tax on crypto profits and 1% TDS on all transactions.
Individuals and entities within the local crypto ecosystem have voiced concerns over the high tax rates, with social media flooded with calls to #ReduceCryptoTax. However, during the interim budget presentation, Finance Minister Nirmala Sitharaman reiterated that there would be no modifications to the current tax regime for digital currencies.
“The campaign to reduce crypto tax won’t stop,” asserted Sathvik Vishwanath, the CEO of India-based crypto exchange Unocoin.
Commenting on the potential of cryptos as a catalyst for national development, VP of crypto exchange WazirX, Rajagopal Menon, highlighted the pivotal role of digital assets in advancing India’s economic landscape. Acknowledging the transformative power of cryptocurrencies, he emphasized the significance of integrating long-term financing provisions for domestic crypto projects to foster digital public infrastructure.
