The Indian central bank will create a digital rupee version in the following financial year, according to the finance minister.

As she presented the nation’s annual budget, Nirmala Sitharaman stated that “Introduction a central bank electronic currency will give an boost, a huge boost to the digital economic sector.” Digital currency will lead to an easier and more cost-effective currency management system.

In 2022-2023 fiscal year, the Reserve Bank of India will launch the digital rupee. Its introduction is expected to take place on April. 1.

Sitharaman didn’t give details as to how the digital rupee would function or look like but stated that they would use “blockchain and other technology” for its introduction.

Blockchain refers to the technologyThis was initially created with bitcoin. However, the meaning has evolved over time as it is used in a variety of other applications.

India, if the plan is followed through with, would become one of the most powerful economies in the world to create a digital currency called central bank digital money (CBDC).

China has worked on an a digital version of its yuan since 2014When it comes to the launch of CBDCs worldwide, and is farthest ahead.

In the two-years since its establishment, China’s People’s Bank has carried out trial lotterys where citizens are given digital Yuan to use in their daily lives. The central bank recently looked at expand the use of the digital yuan. China is yet to launch its digital currency nationally and there’s no timetable.

Japan has begun to investigate its CBDC and last month, the U.S. Federal Reserve. released a study into a digital dollarIt did not decide whether or not it would, however.

India continues to push for a digital rupee. However, India tried to adopt a more tough stance regarding cryptocurrencies like bitcoin. currently working on regulation for the sector.

Sitharaman stated Tuesday that income from virtual assets transferred should be subject to a 30% tax.