A new state-issued cryptocurrency is in the rumors and the crypto news lately in India, after a panel under the country’s finance ministry tasked to propose certain regulations for cryptocurrencies such as Bitcoin. The panel is reportedly set to recommend a state cryptocurrency that will be backed by the government.
As Quartz reported while citing one of the senior officials, the group is set to suggest the development of a state crypto token on a blockchain that will be developed by the government. The ‘senior government official’, as cited by Quartz, stated that the government is “evaluating the government-backed cryptocurrency and crypto-token.”
What’s interesting is the fact that the central bank of India already admitted that it is interested to issue a central and bank-issued cryptocurrency. Even though many reports by internal units dedicated to crypto and blockchain research have been refuted by the Reserve Bank of India (RBI), the central bank confirmed the creation of an ‘inter-departmental group’ that will be tasked to study the “feasibility of issuing a central bank cryptocurrency (CBDC)” in its Annual Report this year.
As the executive director of RBI Sudharshan Sen hinted in September 2017:
“Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely.”
According to some rumors from the officials, the cryptocurrency might be named “Lakshmi” inspired by Hindu’s goddess of wealth and prosperity.
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