Biden follows India's footsteps on issuing cryptocurrency

American president Joe Biden is expected to sign a longstanding order this week asking the Treasury and other departments in the government to study the ramifications of creating a US central bank digital currency. The order will set a 180-day deadline for a series of reports on cryptocurrency regulation in America.

The order comes amid concerns around the role of cryptocurrencies in helping Russia circumvent financial sanctions imposed on them due to their invasion of Ukraine.

The order does not necessarily signal a shift towards a more lenient view of digital currencies, as the reports from various departments could very well return negative or neutral outlooks on the ecosystem.

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[Budget 2022] Top exchanges welcome 30pc tax regime on crypto income, CBDC rollout

During the Budget 2022, Union Finance Minister Nirmala Sitharaman had announced similar steps from the Indian government. India has asked for multiple reports on whether it makes sense to issue a central bank digital currency, as well as more information on how to regulate the ecosystem.

However, India also announced punitive taxes on cryptocurrency trading during the Budget session, with a 1 percent tax on every trade as well as a 30 percent capital gains tax on profits.