Lakshmi of Cryptocurrency World Might Just Bless The Indian Sub-Continent Pretty Soon
Following the massive strides of cryptocurrency sphere, Indian government is finally taking note of the same and is preparing to herald an indigenous virtual currency range in line with the Bitcoin architecture. According to a report published by Business Standard on Saturday, the state-run cryptocurrency has received the nomenclature of Lakshmi after the Hindu goddess of wealth and prosperity. Whether or not this cryptocurreny form receives the blessings of the divine Hindu goddess is something which time shall outlay.
A committee was set up by the government to discuss about viable methods and after effects of launching India’s very own digital currency medium. The committee consists of topgun officers from Securities and Exchange Board of India (SEBI), RBI, the Central Board of Excise and Customs (CBEC), Income Tax Department and the Financial Intelligence Unit.
Sudarshan Sen, the executive chairman of Reserve Bank of India disclosed his lack of support towards Bitcoin stating that the government does not recognise non-fiat cryptocurrency forms. RBI mentioned that it is looking for fiat cryptocurrencies but nor for privately issued cryptocurrencies such as Bitcoin. Fiat cryptocurrency means that cryptocurrency which is officially launched by the designated authority.
This has created a vacuum which can be filled only when the Indian policymakers come out with their own virtual currency form which will follow the legal route to be given the title of a fiat cryptocurrency. This new currency which is termed by many as the alternative to the traditional Indian rupee will require amendments in the ongoing Currency Act to proceed in its action path which in turn will increase the time lag of converting this cryptocurrency dream into a hard rocking reality.Whenver the decision is taken, the cryptocurrency will fall in the domain of Reserve Bank of India (RBI).
Sudarshan Sen has been quoted as saying:
“Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely.”
Vaibhav Parikh, partner, Nishith Desai Associates, said:
“I won’t be surprised if the government comes up with its own cryptocurrency because banks are trying blockchain as a technology and to make blockchain work it would need some cryptocurrency. Since it doesn’t trust Bitcoin it may come up with their own currency.”
Just when China imposed a ban on ICO , Dubai is planning to become the first Bitcoin powered nation by implementing the same in its financial architecture. Dubai has even planned to implement Blockchain Technology in it’s all functions by 2020.
However Indian lawmakers feel it is of paramount importance to provide this cryptocurrency form with a solid legal backing rather than going with the flow and accepting the digital craze with open arms to safeguard against momentary setbacks.