https://www.financialexpress.

com/money/govt-move-to-tax-cryptos-will-bring-legitimacy-to-industry-
coindcxs-ashish-singhal-and-sumit-gupta/2428024/

https://www.financialexpress.com/budget/union-budget-2022-slightly-bittersweet-but-largely-
positive/2426274/

https://www.financialexpress.com/money/taxing-income-from-digital-assets-first-step-towards-
regulating-new-asset-class-feel-blockchain-crypto-players/2425367/

https://economictimes.indiatimes.com/wealth/personal-finance-news/digital-rupee-to-be-introduced-
by-the-rbi-budget-2022/articleshow/89267150.cms?from=mdr

https://economictimes.indiatimes.com/news/economy/policy/indias-digita l-currency-to-debut-by-early-
2023/articleshow/89379626.cms

To start things with, cryptocurrencies are digital currencies designed to simplify online transactions and to fulfil the need of a medium of exchange,
similar to the physical money, as we all know

ADD TO THE BLOG

firstly, it maintains a record of transactions (or any data being passed onto a blockchain network). This not only helps trace the path taken by a
commodity through concerned parties with high transparency, but also creates an irreversible chain of unique blocks, resulting in secure economic
exchanges.

Secondly, a blockchain system encrypts goods with unique fingerprints(called keys), which further helps in procuring only genuine goods, and results in
reducing the losses from counterfeit goods.

https://economictimes.indiatimes.com/news/economy/policy/blockchain-cryptocurrencies-and-budgetary-regulations/articleshow/89344503.cms

To ADD PART FOR DECENTRALISED FINANCE

Through the positives of blockchain, we’ve looked at a mainstream subject for a decentralised financial system that can transform our perception about
payments. Decentralised finance (or DeFi) is a simplified financial system which eliminates the majority of time consumed by the intermediaries,
leading to faster transactions. DeFi, through its introduction, can generate breakthroughs in the financial system through solving inefficiencies and
bringing in new tools in the form of blockchain and smart contracts.

It uses blockchain to create a platform wherein users can perform almost any economic exchange from trading cryptocurrencies to borrow/lend credit
without much of the usual hassle often caused by intermediary.

DEFI AND SMART CONTRACTS

Several top cryptocurrencies now have blockchains with smart contract functionality, and they're opening up a
world of possibilities in finance and other fields. These potential use cases also make cryptocurrencies with
smart contracts a popular investment opportunity. (CBDC will have the functionality and all)

Smart contracts allow cryptocurrencies to offer much more than a role as a digital currency that can transfer
funds from point A to point B. Blockchains with smart contracts can build entire systems of decentralized
finance (DeFi) that can operate on their own without needing a central governing body.

Smart contracts also strengthen the ideology of transparency, which already exists in a blockchain; the open nature of blockchain allows all parties to
parse through the terms concerned with a particular transaction or any other agreement, forming a safe and legal environment for contracts to exist.
Furthermore, the extensive workability that smart contract offers (its ability to include any condition for the ignition of transactions) increases DeFi’s
overall efficiency as a financial system]

TO ADD IN THE PROPERTY PART:

ANNOTHER SUCCESSFUL APPLICATION OF DeFi and blockchain is present in the form of NFTs (Non Fungible Tokens), which are digital tokens
which can be exchanged within the network.

DIGITAL CURRECY TO BE BASED ON BLOCKCHAIN

https://economictimes.indiatimes.com/wealth/personal-finance-news/digital-rupee-to-be-introduced-by-the-rbi-budget-2022/articleshow/89267150.cms?
from=mdr (It is based on blockchain)

In September 2021, El Salvador adopted bitcoin as one of its two official currencies.
Over the last year, companies like Walmart and Amazon have hired digital currency and
blockchain experts. And all over the world there's been an increased focus on central
bank digital currency or CBDC — a digital, legal tender, issued by the government. 

“Digital rupee issued by the RBI will be a legal tender. Rest all aren't legal tender, will not, will never
become legal tender," he added, news agency ANI reported.

“There is no guarantee whether your investment will be successful or not, one may suffer losses and
govt is not responsible for this," he added.

As per the finance minister, the RBI will introduce the Central Bank Digital Currency (CBDC) as India’s
official digital rupee in 2022-23. The announcement had come after months of speculations around the
introduction of a blockchain-based official digital currency of India.
“The introduction of the CBDC will give a big boost to India’s digital economy. The digital currency will
also lead to a more efficient and cheaper currency management system,"

Drawback

Unlike Bitcoin, which is pseudonymous and creates a traceable digital footprint, CBDCs
take advantage of blockchain technology and without the need for proof of work. "As it
is controlled by central banks, in terms of money supplies, decentralizing this aspect
doesn't look so important, but what looks important for us is the transparency a
blockchain can provide."

DIGITAL CURRENCY OF THE GOVERNMENT AND DEFI PRINCIPLES

The move will not only reduce costs related to currency management, but can also propel India into a much better position in the digital space.

It will also make India one of the very few countries to implement CBDCs, and to have its own centralised digital currency.

The introduction of digital rupee can also fulfil various DeFi principles and can help achieve faster economic growth. It is also said to make use of
blockchain and other technologies to accomplish what could possibly be a valuable addition to the present financial system.

Conclusion

With a growing number of cryptocurrencies out there, Tinn said, a more unified and
regulated digital currency would be better for future applications.

While several aspects of a smart contract's life currently necessitate specialized technical knowledge (such
as programming a smart contract), the expected widespread adoption of decentralized smart contracts,
fueled by the promise of cost savings, will undoubtedly lower existing barriers to entry and lead to the
development of user-friendly smart contract creation, testing and sharing environments.

Enduring states are quick to create fiscal space for future shocks, uncertain events or a rainy day.

TO ADD EXTRAs

- When the transaction is complete, the blockchain is updated.

- This built-in conflict resolution process improves openness and fairness for all parties involved. 
(To research)

Budget Sentence:
- Technology and digital infra will be the key enabler for the launch of/success of
- In a major push for the digital currency, the government will be coming out with a digital rupee
issued using blockchain technology by the RBI from 2022-23.
- It will give boost to the economy
- The existing currencies have been recognized as a virtual digital assets trading of which will be
taxed at 30%. The finance secretary has said that cryptocurrency will never be a legal tender.

- The government’s focus on digitization, combined with creation of infrastructure, it is sure to

accelerate economic growth and entrepreneurship. It is likely to enhance living standards while
ensuring sustainability.
- The budget is clearly seeking to strike a balance between macro growth with micro-all inclusive
welfare, through digital economy and fintech as also tech enabled development, energy
transition and climate action.