Could India be Looking to Research and Develop their Own Cryptocurrency?

By Luke F – Cryptocurrency Speculator

A group of Indian finance ministers may recommend launching a government-backed cryptocurrency as reported by Quartz India. A senior government official has said they are considering the government-backed cryptocurrency and crypto-token with the intention to develop blockchain technology. This could give the government an opportunity to cash out crypto.

In December 2017 a panel was set up by the finance ministry to propose measures for regulation to buy and sell cryptocurrency. There has been a delay on submitting the report and no answers have been sent yet to confirm this. The government’s plan appears to be in line with the Reserve Bank of India’s (RBI) proposal. This bank has been examining the viable options for launching a government backed digital coins.

An anonymous executive said in the article, “if a virtual currency is going to be backed by the government then it goes against the whole grain of such coins, these are essentially decentralised ledgers, and if the government or the RBI is trying to control it, then it loses its meaning.” There are concerns that a government backed cryptocurrency may ban other digital currencies even making it a punishable offense to own and sell Bitcoin.

Other countries like Venezuela have already started to introduce a government backed digital currency with the Petro. As Venezuela produce the second largest amount of crude oil, they’ve based the price of their cryptocurrency on the previous days barrel of oil. Iran are considering launching their own virtual currency too.

RBI have suggested to name their digital currency Lakshmi, the goddess of wealth in Hindu. Selling crypto and trading will help reduce the cost of printing paper currency for the bank. If all banks looked to use digital currencies, cheap cryptocurrency would be a more cost-effective choice for transactions.

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