What is Crypto Currency or Digital Currency?

By | March 1, 2022

Finance Minister Nirmala Sitharaman presented the budget on Tuesday. In the budget announcement, Nirmala Sitharaman talked about tax on virtual assets and launch of Indian digital currency.

He said, 30 percent tax will be levied on the income from transactions of any kind of virtual digital asset. One per cent TDS will also have to be paid for transferring virtual digital assets. The person receiving the virtual currency in the gift will have to pay the tax.

Apart from virtual assets, Finance Minister Nirmala Sitharaman also talked about launching digital currency on behalf of the Reserve Bank of India this year. Big computers solve a particular formula or algorithm, it is called mining, then cryptocurrency is created.

There are about four thousand virtual currencies available in the market like bitcoin. All these virtual currencies are called cryptocurrencies. Some organization controls the normal currency.

Like the currency in India is controlled by the Reserve Bank of India. The Reserve Bank prints the currency and maintains its account. No organization controls cryptocurrencies.

Video: Sarvpriya Sangwan and Deepak Jasrotia

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