Finance Minister Nirmala Sitharaman announced in her budget speech on Tuesday that the RBI will introduce a digital currency in 2022-23 using blockchain and other supporting technology.

“Introduction of a central bank digital currency will give a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system,” the finance minister said in Parliament.

The finance minister also announced the imposition of 30% tax, on income arising out of digital assets.

This is the highest tax bracket in the country and is expected to cover all deals in crypto currencies such as bitcoin.