Why India is thinking of creating its own Cryptocurrency?
While the Indian government is still in the works to make a strong legal framework for bitcoin and digital currencies, they are considering creating their own bitcoin-like cryptocurrency. Known for being witty individuals, it is not impossible that Indians will be successful in taking this course of action. The proposed legalized Indian digital currency is yet to be issued by the Reserve Bank of India, the largest and leading bank in the country.
The government of India is planning to name the currency, Lakshmi, given a chance that this will progress since the name was derived from the Hindu goddess of Wealth, Fortune and Prosperity. According to a reliable source, it was discussed by the committee of government officials and admitted that this will be a time-consuming process since every time a decision is considered, the digital currency will fall in the domain of the said bank and governing acts already made such as the Currency Act might need to be amended.
Executive Director Sudarshan Sen of the RBI made a comment on last Fintech Day regarding his thoughts about cryptocurrencies. He mentioned that the government might soon be introducing a fiat digital currency, which will be from the RBI itself. According to him, the Indian government is considering cryptocurrencies that can be an alternative to Indian Rupee in general but they are not comfortable in opening their doors to non-fiat currencies such as bitcoin.
While waiting for the solidification of India’s digital currency, the government has already started creating a legal framework for bitcoin and other cryptocurrencies that might soon penetrate India. Money Control announces that the upcoming framework will be prepared by the government pretty soon.
The government even created a research committee to deeply study bitcoin and how it works. It was figured that the committee sent a report recommending to strictly monitor these types of currencies confirming that though they did not impose an immediate restriction, made it clear that the government is also greatly not in favour of promoting it anytime soon.
To add up, they recommended creating a special task force purely for monitoring the ins and outs of digital currencies within the country. They suggested that the task force will include high officers from RBI, some from Securities and Exchange Board of India, representatives from the Income Tax Department and Financial Intelligence units that will investigate the abuse of digital currencies nationwide.