Indian Government Considers A National Cryptocurrency

September 18, 2017 5:57 pm Published by

The Indian government is examining the possibility of creating its own blockchain-based cryptocurrency similar to the bitcoin, Cryptocoins News reported Monday.

India’s central government has considered a bank-backed state-cryptocurrency because of its discomfort with bitcoin, said the report.

“[The cryptocurrency] proposal was discussed by a committee of government officials, and the panel found the idea of setting up and running blockchain for financial services useful” — Unnamed Indian government officials

Officials have discussed naming their new cryptocurrency after the Hindu goddess of wealth and prosperity, Lakshmi, the report said.

“Whenever the decision is taken, the cryptocurrency will fall in the domain of the Reserve Bank of India and some Acts such as the Currency Act might have to be amended,” said a Business Standard report. The statement indicated the development of such a currency and its regulations could take quite some time.

India’s central bank has already looked into cryptocurrencies with the intention to digitize the Indian rupee, the report said. RBI executive director Sudarshan Sen said at a FinTech conference people within the company were “looking at fiat cryptocurrencies” to find an “alternative to the Indian rupee.”

Indian authorities are reportedly in the process of creating the regulatory framework for digital currencies within country lines, said the report. It is unlikely India will see a ban like some neighboring nations considering the rise in awareness of cryptocurrency and bitcoin procedures.

India’s finance minister Arun Jaitley said in August the last few years presented a “notable growth” in the Indian bitcoin market, the report concluded.

–, Shyma Hossain

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