A senior government official in India has recently revealed the government’s plan to release a government-backed cryptocurrency and crypto-token.
India’s Proposed Plan
India will be joining countries like Venezuela to introduce a government-backed cryptocurrency into the economy. This is coming after the government had enforced the rule that 90% of the country’s currency notes be taken out of circulation as they had become obsolete. This action was geared towards making India a cashless society, and what better way to have this done than by using cryptocurrencies. So, therefore, in this direction, the government will be making extensive research, weighing their option on this project.
Though the government in India just sees the need, Sudharshan Sen, the Executive Director of the Reserve Bank of India (RBI) had since 2017 had a keen interest for the new technology as he proposed a “fiat currency.” It was also revealed that the cryptocurrency would be named Lakshmi, after the Hindu’s goddess of wealth and prosperity.
The cryptocurrency will be backed by the rupee as it would have the same value as one rupee. The coin will also be trading against other top valued cryptocurrencies such as bitcoin and ethereum.
Continuous Efforts By Various Governments Towards Cryptocurrencies
Though countries such as Venezuela and India are making conscious efforts in leveraging on the benefits cryptocurrencies have to offer, other countries such as China is fighting against it as they seem to be guarding their citizens against the negative side of cryptocurrencies.
Nevertheless, looking beyond current problems, the new technology has got a lot to offer, and its emergence has been of benefit to many especially when it comes to making cross-border payments.