Bitcoin Forum

India Exploring Commercial Uses for Central Bank Digital Currency (CBDC) Says Finance Master!

The Indian government is exploring “several commercial use purposes and not just financial inclusion” for its central bank digital currency. India’s finance minister clarified that the aim is for the digital rupee, which will be backed by the Reserve Bank of India (RBI), to be issued by 2023.

India’s Finance Minister on RBI-Backed Digital Currency
Indian Finance Minister Nirmala Sitharaman talked about the country’s central bank digital currency (CBDC), the digital rupee, this week at a business roundtable on “Investing in India’s Digital Revolution” in San Francisco.

The event was organized by the Federation of Indian Chambers of Commerce & Industry (FICCI), a non-governmental trade association and advocacy group based in India. It was hosted by the U.S.-India Strategic Partnership Forum (USISPF).

More Info: https://news.bitcoin.com/india-exploring-commercial-uses-for-central-bank-digital-currency-says-finance-minister/

What do you think about the comments by India’s finance minister?

That is just another attempt to attract peeps towards the local fiat currency to which they are converting into digital format. It really does not matter if they form multiple partnership with USA or any other countries but at the end it would be to take attention away from the crypto currency’s and put into their own digital currency.

These are all attempts to keep peeps away from the crypto space. The same way she also imposed 30% taxes on the crypto transactions. So this is what it means.

Nothing new here, I mean there have been governments around the world, shifting towards CBCD. I'm not against it, specially if it will help the citizens do transactions with the government much faster with their digital fiat. But I don't like it being force to the citizens though, at least India should not be anti-crypto. They should understand of all the countries, that this is a new technology that can shape the future of one of the largest population.

Many countries around the world have began to introduce digital currencies not only India this is not new anymore. But the fact that government does not understand and doesn’t want to implicate and approve the use of cryptocurrency is still making no sense. Some countries who have introduced digital currency have no different with the normal fiat, I just hope it helps in making transactions faster and easier for all in the long run.

That is a good idea, if they make more research, I believe they will finally come into conclusion that CBDCs are fiat and have no other further function that fiat can not perform, I am not saying phisical fiat called paper money but about the fiat that are transferred electronically, like through the use of bank app or payment gateway like credit cards.

Don't know why you're using exclamation marks but anyway, just in case you're new to India, the country will always find ways to surprise you with tech. In general, friendly with tech and crypto until it starts to make them confused and troubles the rich, they they change their minds and fight with the system.

CBDCs I wouldn't put too much value in them.

I agree with these comments. CBDCs are a new form of fiat money, or rather the digital replacement for the new fiat. So it's not surprising what they are doing in India, but if you appreciate Bitcoin and its decentralisation, you won't be thrilled by the news.

That's good for India! because in India, corruption is at all time high, tax collection is lowest, people find legal loopholes to make tax free money etc. With commercial use of CBDC, it will be difficult for the businesses to hide their cash flow and they will be forced to pay taxes. It is very much needed because majority of the small business owners do not pay taxes even if they earn way more than the basic exemption limit. It's just the people who are salaried, always forced to pay taxes. It must change and inclusion of CBDC into commercial space, will make it happen.

Looking forward for it. Only a single community of salaried people should not be taking up the entire burden of India's tax collection. That's not right! I personally hate so see my payslips especially in February and March where 90% of my salary is deducted for tax.

Well, just another CBDC news and they are to be expected for those countries that have shown interest to cryptocurrencies. But before, in fairness with India. They're against to crypto and have even banned it but now, despite CBDCs are not really cryptos.
They are at least progressing every single month and starting to be open with such adoptions of new technologies and currencies.

If any government considers CBDC to be legal money, it will be a farce on the Cryptocurrency standard. Despite the fact that cryptocurrency is not legal cash in India, the government levies taxes on crypto trading and profits of up to 50%. And it still intends to launch its own CBDC.

The government spends more time learning about the benefits and potential of Blockchain technology. Furthermore, the government lacks comprehensive documentation on the accessibility of crypto. The government loses money as a result of all of this.

But, rather than creating a new CBDC, my honest recommendation is to build a proper structure for crypto taxes. This is due to the fact that CBDC will be entirely centralized.

I do not trust any news that comes from India, the news is always conflicting and reflects with time. I do not know because of the way we were transmitted or because of the conflicting regulations in that country.
Was crypto taxed so high last month? Isn't that true?

government will not start CBDC unless FED give them green light.

I love India and i hope this country will prosper soon. I think the idea of ​​digital currency is good. I hope that India will switch to digital currency settlements and there will be no problems with this. I know that in India there is a great demand for digital coins and this country will be able to create a cryptocurrency market in the near future. And since India is among the top ten countries with the largest economy, there is a lot of work to be done in this area, which will affect the world economy.

Yeh, just another fancy way to do fiat. It IS just fiat anyway, and the name says it all, central bank digital currency. I really don't know why they made such a big deal when most of them didn't even consider the use of blockchain. And those that did are only using the technology to make private systems, not public crypto.

It's really nothing great for Bitcoin.

India is a very technological country.  It has a lot of good developers and programmers.  

Therefore, based on this, the creation of a central bank digital currency (CBDC) in India is quite possible.  

Will it be good for the country?  

I'm not sure.  CBDC is a highly centralized monetary financial system.  The system, in which, in addition to the Central Bank, there are many commercial banks, is much more democratic and decentralized.  In a commercial bank, you can put money in a deposit account and receive high interest.  The CBDC does not provide for this.  In addition, CBDC is a total control over the income and expenses of citizens.  This deprives them of many rights and freedoms.  

Bitcoin can give you financial freedom.  

However (as far as I know) the Indian government has a negative attitude towards cryptocurrencies.

It is just another government forbidding the use of cryptocurrencies but at the same time trying to deceive people into using their useless CBDCs, if fiat is bad enough right now it is even worse if people accept to use CBDCs, giving the governments the power to print the currency was a bad idea from the beginning, but now they also want the power to see how you spend every single cent, what it is going to stop them from blocking your funds whenever they want or to forbid certain products from being bought? This is simply a bad idea and I have doubts people will adopt those useless CBDCs when there is not really any incentive for them to do it.

the question is how the tax scheme is used. will this follow the crypto tax, or is this just another version of the rupee and not any taxes or fees. This is what sometimes confuses me, where is this CBDC actually classified, can it be called crypto or just digital currency.

India must be greedy enough not to wait and stick to the bitcoin and cryptocurrency it has regulated in the country, the tax it takes from cryptocurrency industries and the levied 1% charges on every transactions in India isn't still enough, what have they been doing with those collected taxes? what has the CBDC got in offer for the people and the economy? it makes no difference, because there's no effective utilization of the tax collected not to talk of CBDC.

Do not expect all central banks to move towards digital currency unless you get the approval of the US government, which will not happen in the near term.
Therefore, the government's plan for prediction by the year 2023, I find it ambitious and unrealistic.
But in general, what does this have to do with cryptocurrencies?

Haha Indian Finance minister is awfully funny, She talks about CBDC aiming for digital transformation and on the other hand kills the Indian blockchain market by imposing heft tax on cryptos without even bringing a law on cryptos altogether. They are just trying to catch up with what other governments around the world are planning to do, I don't think there is any development around this CBDC it's just an imaginary thought so far which is just being explored by the government, no serious action has been taken on this. On the other hand, China has already launched it's CBDC. So far the digital rupee won't be anything too fancy, it will just be an online wallet with INR stored in cryptographic form. That's it.

It was a good move by the Finance Minister of India.They proved had some stuff in the trending technology.When the people moved in one side,the government should not move in the opposite direction.We had seen what happened in El Salvador.The government of the El had force the usage of the bitcoin,the people started to revolt to against this things.So this Indian Fiancé minister was welcome one.

I would be curious to know how many remember india's withdrawal of 500 and 1,000 rupee bills back in 2016.


If everyone forgot this happened in 2016, they'll have an easier time pushing a CBDC.

But if everyone remembers it, they could have a more difficult time.

A big part of it could come down to brand name recognition and trust. Do people trust banks in india after the controversial note withdrawal of 2016.

As I see the creation, launch and use of CBDC is increasingly being discussed in the media, as well as more and more large countries are declaring this. Of course, this is a very good signal for the entire digital industry, while it is important to note that India plans to launch a digital rupee as early as 2023, which means that very soon we can witness the launch of a new digital financial system. All this opens up many new opportunities for the development of many industries. Personally, I think that the comments from India are a signal that all of the above will definitely be launched and will work. For us, this will be a transition to a new era of opportunities and, God forbid, new successful development throughout the world.

i do, i remember standing in long lines outside banks in winter to withdraw our own money and that too with a limit.

i remember waking up at as early as 4:00 am and running to secure my place in the queue outside bank before it gets too big.

and i do not trust the bank or the government but the thing is common people have no choice.

they make these rules and they shove them down the people's throat and we have no option but to swallow them and accept the consequences that come with them.

but with btc, the government is afraid as they should be, which is why to repel people from it they have introduced the 30% tax and now this but the people who know btc and understand that it is not controlled by banks or government will continue to use it, hodl it.

like before most if not all of the trading has transferred to p2p but it has become hard. maybe, this cbdc will help to trade btc more easily, u never know.

When it comes to cbdc government of the world don't seem to have problem in embracing and exploring ways to best implement it into the system. This is more like a familiar ground, the control mechanism is important and cbdc has that unlike btc.
If the Indian government are already exploring for commercial uses means sooner than later cbdc will be widely use in day to day transaction, and even sooner the adoption will be wide spread.

They aren't wasting time to suppress the use of btc, they don't want people to even start the process hence the rush to exploring cbdc commercial usage. Try as they might they can't stop those who fully understand btc from using and investing in it.

Also recall this proposition: https://www.cnbc.com/2022/02/03/india-budget-proposed-a-30percent-tax-on-digital-asset-income.html

India wanted to tax crypto at 30 percent. Not exactly a coincidence. The general flow of events is demonize/spread misinformation of crypto first. When that doesn't work, they will force compliance through regulatory governance and high tax rates. End goal is to prop up fiat, and CBDC's will eventually replace fiats as it allows for easier control of the money supply and more reliance of citizens on government.

What can be the other uses of money apart from being used as money so called finance? They are trying to bring back their old fiat in the form of digital rupee with no actual change and I am not sure they even know how the blockchain system works and how it differs from the decentralized cryptocurrencies. CBDCs are useless and no real purpose if they're going to back it up hy their same fiat money value but spending huge money for all the infrastructure needed.

they didn't just propose that, the new tax regime is in effect since 1st april 2022 and therefore any btc you sell after that would require you to calculate your gains and pay the tax accordingly after the end of this financial year.

moreover any expenses one bears during acquiring and selling of btc cannot be deducted from the gains, such as transaction fee, exchange fee, etc.

and also, from 1st july 2022 a 1% tds will be imposed at the source, which according to the government is a measure to keep track of all the bitcoin purchases and later impose tax on them.