India might launch its own cryptocurrency

The Indian government is apparently taking into consideration for its own digital cryptocurrency called Laxshmi, alike bitcoin. With the increasing recognition of bitcoin in all financial market, the government of India is now looking at a government-issued digital currency. India’s central bank0 (RBI) believes that digital currencies are susceptible to misuse, and hence chose to issue one themselves. This cryptocurrency will fall under the area of the Reserve Bank of India (RBI).

According to Business Standard, the cryptocurrency will be code-named ‘Lakshmi’ — after the Goddess of wealth. If introduced, Lakshmi should run on an implementation of the blockchain technology used by Bitcoin itself. Off late, India has been pushing the digital payments agenda rather strongly. As a part of the government’s cashless initiative, there has been ‘notable growth’ in the bitcoin market in India. Since then banks have been trying to make blockchain work, and for that, it would need some cryptocurrency: Lakshmi.

Background

According to RBI cryptocurrencies pose possible financial and legal customer safety and security related risks. The recent cyber attacks “ransomware” hackers encrypted the victim’s data and demanded that they send payment in bitcoin in order to regain access to their computers.

We must know that bitcoins are a currency because people choose to accept them as a means for exchange for any kinds of goods and services. Cross-border money transfers and dark web notoriety do make governments jittery, but cryptocurrencies are working very well for people who want anonymity, something which no fiat currency can offer.

Despite RBI cautionary users on cryptocurrencies, India is seeing some rapid expansion on bitcoin users — it has over 5,00,000 bitcoin wallet users and the Indian Government did mull over the implementation of Know your Customer (KYC) norms to ensure safe transactions of cryptocurrencies.

Development on Lakshmi

Apart from a nod by the RBI, the State Bank of India has also taken the initiative to bring lenders and tech companies together for using Blockchain technology to share information among banks. This should eventually prevent frauds and tackle bad loans which are almost one-fifth of the bank’s loan book. This has been given the name “Bankchain” and is in partnership with IBM, Microsoft, Skylark, KPMG and 10 other commercial banks.

Also read : 10 Commonly used Bitcoin terms.
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