According to Business Standard, India would launch its own cryptocurrency, similar to Bitcoin. The government’s committee was set up to discuss the proposal. Officials said blockchain technology in the financial sector is rather promising.
The Reserve Bank of India established a working group to study the possibility of using virtual currencies as a legal means of payment.
“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," Reserve Bank’s executive chairman Sudarshan Sen said. He added that the central bank is not comfortable with non-fiat cryptocurrencies.
The new cryptocurrency might be named “Lakshmi”, after the goddess of wealth and prosperity in Hindu.
In case the government rolls out the cryptocurrency, it will need to provide the appropriate legal framework, including some amendments to currency regulation.
In November 2016, Indian Prime Minister Narendra Modi announced a demonetization which led to an increase in the number of Bitcoin users. Now there are about 600,000 of them.
