The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms & Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

India steps into a virtual world

rupee-ge4847bb73_960.jpg

India is embracing crypto-currencies and has even floated the idea of a digital rupee. These are natural steps for a country whose digital infrastructure is rapidly evolving, but with the future of the policy environment still unclear, details matter.


India is preparing to embrace the digital rupee in the next financial year, following China’s lead. That’s no surprise given the enthusiasm with which Indians have taken to crypto-currencies.

There has been a “phenomenal increase in transactions in virtual digital assets”, Nirmala Sitharaman, India’s finance minister, said in her 2022 budget speech in February. The magnitude and frequency of digital asset transactions prompted Sitharaman to propose a flat 30% tax on the new asset class.

There’s a good reason why India’s government is keen to jump on the virtual finance bandwagon: Digital assets can have a significant impact on a nation’s economy.

CrossTower, a crypto exchange which offers capital market capabilities, estimated the potential economic value of digital assets for India could reach $1.1 trillion by 2032, in a research report published in December 2021. But even these estimates could be conservative, the report said, given the revolutionary nature of the asset class. Just as the internet ended up touching every aspect of people’s lives, digital assets will also become ubiquitous.

CryptoCompare, an independent global crypto-currency market data provider, ranked CrossTower fourth in the world last year, based on measures such as transaction risk, regulation, quality of assets and security.

What the internet was in the 80s, that is blockchain today
Vikas Ahuja, CrossTower India
Vikas, Cross Tower.jpg

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

Tags

Manju Dalal is deputy editor of Asiamoney. She joined the Euromoney group in September 2021. She is also deputy editor of sister publication, GlobalCapital Asia. Manju is based in Singapore.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree