Aniket Jindal, Co-founder, Biconomy
‘The blockchain based digital rupee is a welcome step. While the critics rightly point out that it’s not decentralized & issued by the govt, we need to understand that the mainstream adoption of web3 & crypto won’t happen overnight. It will happen slowly with small steps toward our eventual goals. And such a blockchain based digital rupee has the potential for being a big step in onboarding 100s of millions of Indians into the blockchain economy. It will also help open one of the largest economies to new innovations in the web3 ecosystem.’
Tarusha Mittal, COO and Co-founder, UniFarm, a group staking protocol
‘Digital currency seems to have finally caught the government’s attention.
This signifies a good step and it is a welcome step towards the sentiments regarding cryptocurrencies as there are considerably fewer chances of a ‘ban’ or ‘prohibition’ of it, which is untenable anyway.
According to our Finance Minister, Income from the transfer of digital assets is to be charged 30% tax, plus 1% tax on the transaction. So, we now at least know what the retail users can expect this year.
At the same time, the tax bracket is a bit concerning as it is on the higher end and individuals might have wanted lower LTCG taxes and carry forward of losses similar to equity or housing.
I believe the overall outcome will revolve around how the tax regime will be implemented. We would like to see the finer print to really understand the implications for asset classes- corporates and retail users.
But this is at least a start. The introduction of digital rupee using blockchain technology will further help in reducing financial and physical efforts required for money management and increase the awareness around the technology.’
Aishwarya Shivakumar, CEO, Oddz Finance, a one-stop decentralized finance crypto derivatives trading platform
‘The inclusion of the crypto and blockchain sector in the Union Budget 2022 is a welcome step taken by the Government of India. With the announcement of RBI launching its own digital currency using blockchain in 2023, the awareness of the technology and the economics surrounding it is only bound to increase. This announcement also implies a positive outlook of the government towards this technology and its potential.
Furthermore, clarity regarding taxation of virtual assets helps clear out ambiguities regarding the Government sentiments around cryptocurrencies as the ambit of the Finance Ministry has expanded towards the cryptocurrency and digital assets sector. Income from the transfer of digital assets entails taxation of 30% along with a 1% tax on the transaction. This seems to be on the higher spectrum but it is a start and we hope to go only forward from this.
We are further looking forward to seeing how it fares in more detail in the coming months.‘