India planning to launch its own cryptocurrency?
In the wake of blowing hot and cool on bitcoin, the government of India is thinking about drawing out its very own cryptocurrency.
A board comprised by India’s finance ministry suggested that the nation launch a government-backed cryptocurrency.
“We are assessing the government-backed cryptocurrency and crypto-token,” said a senior government official conscious of the dialogs of the board. “Furthermore, we are hoping to create and empower our own innovative work of blockchain technology,” the authority included, alluding to the digital foundation on which cryptocurrencies are based.
The fund service board was set up in December 2017 under Subhash Chandra Garg, secretary, bureau of financial undertakings, to recommend measures to direct cryptocurrencies. The board should present its report by July, which was later pushed to the year’s end. An email sent to the back service looking for affirmation remain unanswered.
Its arrangement, be that as it may, is by all accounts pair with the Reserve Bank of India’s (RBI) proposition made prior. The national bank has comprised a multi-division board of its own and has been contemplating the achievability of launching government-backed digital coins.
Meanwhile, the government and the RBI have been moving to diminish cryptocurrency exchanges for some time now.
What prompted this?
Indeed, even in its past gatherings with bitcoin exchanges, government delegates were attempting to see how a government-backed digital currency would work, said a man from the cryptocurrency community aware of the points of interest of the gatherings.
“In the event that a virtual currency will be backed by the government then it conflicts with the entire grain of such coins,” said the executive, asking for obscurity. “These are basically decentralized records, and if the government or the RBI is endeavoring to control it, at that point it loses its importance.”
What’s more regrettable is that the government may likewise slaughter or ban the presence of other digital currencies if a government-backed cryptocurrency is taken off.
“The board is additionally talking about change of the Currency Demonstration to make ownership of any cryptocurrency, not affirmed by the government, a culpable offense,” said the government official.
This comes after the Reserve Bank of India has just descended vigorously on bitcoin and its kind nearly gagging the ecosystem. Since July, the national bank has barred banks from maintaining any business association with cryptocurrency exchanges and traders, including maintaining reserve funds bank accounts.
As anyone might expect, trading is hit.
For example, from its pinnacle when bourses were signifying 300,000 new clients a month about a year back, augmentations have now lessened to simply 1,500-3,000, cryptocurrency exchanges told Quartz. Since April, the exchanges have occupied with a fight in court against the Reserve Bank of India in various high courts and the case achieved the supreme court in May this year. Be that as it may, there are no indications of a conclusion to it.
The circumstance is grim to the point that Zebpay, one of India’s biggest cryptocurrency exchanges, shuttered a month ago.
Like the Reserve Bank of India, even the government isn’t happy with virtual currencies, despite the fact that it needs to push the blockchain technology, a digitized and decentralized open record for cryptocurrency exchanges. The government has additionally communicated worries that these currencies might be utilized to launder cash or trick simple investors. In this way, it is looking for control.
Be that as it may, the possibility of a digital currency backed by the government isn’t new in itself.
Going the Petro way?
Venezuela, the world’s second-biggest unrefined petroleum maker, launched Petro, the world’s first government-backed digital currency, not long ago. The Venezuelan government possesses and controls this cryptocurrency, the price of which is proportional to a barrel of oil.
Indeed, even Iran is hoping to launch its very own virtual currency.
The Reserve Bank of India has reportedly wanted to likely name its digital currency Lakshmi, after the Hindu goddess of riches. “This will be notwithstanding the paper currency that we have. It likewise holds the guarantee of lessening the expense of printing of notes,” Reserve bank of India deputy governer BP Kanungo, said at a gathering in April.