India Reveals Plans For Central Bank Digital Currency, And Crypto Taxation Ambitions

India has just revealed plans to develop a central bank digital currency (CBDC) by next year and tax cryptocurrencies as well as NFTs, as the government inches closer to officially recognizing cryptocurrency assets.

To that end, income from the transfer of any and all digital assets would be taxed at 30%, according to Nirmala Sitharaman, the country&39s finance minister. She also recommended a 1% tax deduction at source on payments made relating to the acquisition of virtual assets in order to collect data on all such crypto-based transactions.

The Indian proposal has arrived at a time when the buying of cryptocurrencies and NFTs has been rapidly gaining traction within the country, despite various regulatory uncertainties.

Meanwhile, neighboring country Pakistan has made no announcements regarding potential changes to its intentions of banning crypto entirely, much to the discontent of Pakistani cryptocurrency enthusiasts and traders.