India might launch its own government-backed cryptocurrency that would make the crypto-situation difficult for any other altcoins.
The finance ministry panel was established in December 2017 to regulate cryptocurrency. The plan that regulates the crypto industry in India had to be presented in July but was deferred to the end of the year.
The plan seemed to be developed with the Reserve Bank of India’s (RBI) support, as the RBI founded its own panel to study the possibility of launching government-backed digital coins.
According to Quartz India, one unnamed senior government official reported:
“We are evaluating the government-backed cryptocurrency and crypto-token. And we are looking to develop and encourage our own research and development of blockchain technology.”
Coin of Contention
The paradox is: the government together with the RBI try to reduce the number of cryptocurrency exchanges. They also may ban the use of any other cryptocurrency that is not approved by the government. The anonymous executive said:
“The panel is also discussing amendment of the Currency Act to make possession of any cryptocurrency, not approved by the government, a punishable offence.”
Such regulatory decisions led to the shut-down of Zebpay the biggest cryptocurrency exchange in India.
The authorities are also concerned that digital money could be used for money laundering, terrorism and different kinds of fraud.
With the Grace of Goddess
Back in 2017, there were rumors that the government-backed digital currency was going to be named Lakshmi after the Hindu goddess of wealth. Well, we’ll soon see whether the gods are on the crypto industry side or not.