India is Looking to Create a Digital Currency

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India is looking into creating a digital currency
India is looking into creating a digital currency

India has decided to ban all entities from dealing with cryptocurrency related activities on April 5, but they are very open to the technology that lies behind it.

India is looking into Blockchain

India has assigned a group to study Blockchain and take into consideration creating a “central bank digital currency” named “Laxmi” – As opposed to private digital tokens they will be issued by their private bank and put into circulation along with the paper currency they currently have.

Deputy Governor of RBI, Kanugo, said that having such a currency will reduce the cost of printing and circulating paper currency, further noting that the blockchain technology has a lot of relevance for the wider economy.

“We recognise that blockchain technology or the distributed ledger technology that lies beneath the virtual currencies has a potential benefit for financial inclusion and enhancing the efficiency of the financial system.”

“We also believe that they should be encouraged to be exploited beneficially for the economy,”

Not a good approach

Some crypto adopters are not sharing the same opinion of India to ban cryptocurrencies in order to create one of their own.
Sathvik Vishwanath, the co-founder of India’s Unocoin, told Quartz India that he doesn’t believe this is the “right direction the central bank has taken

India is not the first country to look into creating a private digital token, with countries like Venezuela to have issued its own digital oil backed currency, Petro, which is not getting much love from countries and even exchanges who are not even considering listing the token.

 

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