Cryptocurrencies found a key mention in the Union Budget of India for 2022-23 — a highly-followed event where the country’s central government lays out its financial plan for the next fiscal year.
India’s Minister of Finance and Corporate Affairs Nirmala Sitharaman announced during her budget speech that the government plans to tax gains made through cryptocurrencies at 30% — ending years-long speculation and essentially giving a regulatory nod to virtual assets.
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The news has received mixed reviews from experts and the cryptocurrency community in India — with some celebrating the regulatory recognition while others lamenting the high amount of tax imposed.
Sitharaman separately said that the country’s central bank — the Reserve Bank of India — is planning to introduce a digital currency, based on blockchain technology, in the fiscal year 2022-23. The finance minister said the move would pave the way for cheaper and more efficient management of money.
Central bank digital currencies — or CBDCs — are highly controversial and frequently criticized by cryptocurrency experts such as Bitcoin (CRYPTO: BTC) bull Nic Carter, who raise concerns that privacy and transactional freedom with such currencies would be even lower than cash — let alone cryptocurrencies.
Here’s how some of the top cryptocurrencies traded in the aftermath of the news:
| Cryptocurrency | Price Action (24 hour) |
|---|---|
| Bitcoin | +3.73% |
| Ethereum (CRYPTO: ETH) | +8.74% |
| Dogecoin (CRYPTO: DOGE) | +4.3% |
| India-based Polygon (CRYPTO: MATIC) | +6.5% |
