Indiam Government Officials Were Constantly Monitoring The Crypto Sector

India’s finance minister, Nirmala Sitharaman, has reportedly revealed that the government is “constantly monitoring” and “watching the crypto sector.” Referring to her budget speech, she noted that crypto taxation will be implemented before the central bank, the Reserve Bank of India (RBI), issues its digital currency.

Finance Minister on Monday said the Reserve Bank of India (RBI) is working on launching India's own digital currency.  "The form and shape of India's digital currency will largely depend upon the Reserve Bank of India (RBI). The Ministry of Finance had consultations with RBI and the country's central bank is working on it," FM Sitharaman said.

While some people see the finance minister’s crypto tax proposal as a step to legitimize the sector, many are concerned that it will stifle innovation. Over 70,000 Indians have now signed a petition on Change.org for the government to introduce more reasonable crypto tax policies.

The introduction of a central bank's digital currency will give a big boost to the digital economy. Digital currency will also help in the currency management system, the minister said.

"Digital currency will also lead to a more efficient and cheaper currency management system. It is therefore proposed to introduce the digital rupee using blockchain and other technologies to be issued by the Reserve Bank of India, starting 2022-23," FM Sitharaman said.

Indian Prime Minister Narendra Modi said that the digital rupee will strengthen the digital economy and revolutionize fintech.