Interesting guest post by the team at BitIndia. See more on their site here.
India, the world’s biggest democracy, is gearing for a major digital revolution. The PM of India had launched the Digital India movement some time ago, and as per the reforms taking place with the speed, India is all set to get developed and digitalize the infrastructure of many aspects which contribute to the functioning of the economy.
A cryptocurrency is basically a digital currency that makes use of cryptography for safety, hard to fake for the reason that of its protection features. Crypto currencies are natural by temperament, which means that they are not issued by any kind of central authority, thus depiction of them is resistant to government meddling or else manipulation, at least in conjecture? Cryptocurrency applies blockchain technology which is definitely publicized as the protected technology in opposition to the hacking intimidations. There is no material currency plus the balance is kept on a ledger on the cloud. There are at present more than 780 reported cryptocurrencies in the world.
As per a Business Standard Report, the Indian government is considering a proposal to introduce its cryptocurrency similar to Bitcoins. As per unnamed sources, the suggestion was talked about by a group of government officials, and the panel found the design of running blockchain and setting up for financial services helpful. They also added that the government may name its cryptocurrency ‘Lakshmi‘.
An upcoming crypto exchange for India, Bitindia aims at bringing 20% of the Indian population to Blockchain.
If the government does moves ahead with the application, the cryptocurrency that will be established will fall in the area of the Reserve Bank of India. As a consequence, a few acts such as the Currency Act may be amended.
— Bit India (@bitindia_co) October 8, 2017
While running a similar to ledger based blockchain cryptocurrency is necessary for settlement, one also needs to keep in mind that both RBI as well as government officials have declared that they are not contented with Bitcoin.
Previously this week, RBI Executive Director Sudarshan Sen had a conversation about the central bank’s uneasiness with Bitcoin, and said that “Right now, we have a group of people who are looking at fiat cryptocurrencies. As regards to non-fiat crypto currencies like Bitcoins, I think we are not comfortable with them.”
The comments came in the light of strong worldwide regulatory inspection over Bitcoins given the topical disturbance in them. Taking into consideration the requirement of lucidity in India, there are bound to be instant tax and regulatory issues which need to be tackled rapidly by the government. Let us agree that set of laws on digital currencies will beat their central reason of such currencies being free from any government interference. On the other hand, if in some way if the digital currencies can be tracked, the resultant easiness of business may exceed the harms that are being counted.
The governments’ purpose is supposed to be to give confidence to the Indian economy, predominantly in the FinTech segment, by getting rid of obstructions to the growth and utilization of digital currencies and other connected technologies in India. This will lend a hand to the whole Indian FinTech system to be ready to give a cutthroat competition globally. And this India’s interest in Bitcoin and other cryptocurrencies could shake the market on a global level.