Is India Thinking About Issuing its Own Cryptocurrency?

Rate this post

Different governments all over the world are thinking about issuing their national cryptocurrencies. It happened in Venezuela, there was an intention to do it in Estonia, and Russia is also working on it. The Reserve Bank of India is also looking into issuing a national cryptocurrency. Could that be possible?

National Cryptocurrency in India

According to an announcement made by the Reserve Bank of India (RBI), the central bank will be studying the effects on issuing a national cryptocurrency. The results will be ready in June 2018.

The bank’s deputy governor B. P. Kanungo, commented about that:

“While many central banks are still engaged in the debate, an interdepartmental group has been constituted by the Reserve Bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency.”

The RBI is trying to improve the financial services it offers, increase its efficiency, and reduce operational costs. With a crypto-Rupee, transaction speeds will increase and the overall financial system will be improved.

Some governments are also implementing blockchain technology in other areas to provide better services. The financial industry is clearly benefited, but other important sectors can improve the quality of life of the people.

At the same time, the bank has decided to forbidden banks to give services to individuals or enterprises that are related to cryptocurrency activities.

“The Reserve bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the RBI shall not deal with or provide services to any individual or business entities dealing with or selling virtual currencies.”

Indian Crypto Troubles

In the past, two cryptocurrency exchanges halted their trading operations and blamed the government for it. BTCXindia and ETHEXIndia informed their customers via email, that they were stopping trading activities in the country.

“As we heard in the budget speech, the Indian government is discouraging cryptocurrency trading. This has been clear also by government actions in the last year, and has put out business under a lot of stress and putting us in a position where we don’t feel that we can continue our business in a professional manner any longer.”

Executive Director of the Central Bank of India, Ganesh Kumar, explained that bitcoin will not be used for payments and settlements. The technology, blockchain will still be available, and used by Indian companies, he clarified.

Indian JM Baxi Group Works with Blockchain Technology

The shipping industry will be very benefited with the implementation of blockchain technology. An Indian enterprise known as JM Baxi Group, one of the most important on earth, has implemented distributed ledger technology to improve internal procedures, to explore new business areas, and leverage blockchain solutions.

JM Baxi has decided to work side by side with IBM, in order to implement blockchain technology.

“The memorandum of understanding envisages a joint go to market on feasible technology solutions,” said a spokesperson from JM Baxi.

Join the conversation over at Telegram (https://t.me/coinstaker)

Image Courtesy of Pixabay