The Government Of India “Estimates” The State Cryptocurrency
The group at the Ministry of Finance of India, which is tasked with proposing rules for cryptocurrencies, such as bitcoin, is said to recommend a government-supported state cryptocurrency.
Referring to a high-ranking official who is aware of the discussions within the intergovernmental panel, Quartz reports that the group intends to propose the development of a state crypto-token on the blockchain developed by the government.
The development occurs at a time when the Central Bank acknowledged that it was studying the digital currency issued by the Central Bank.
While reports from the central bank’s internal division for cryptocurrency and blockchain research were refuted by the Reserve Bank of India (RBI), the Central Bank confirmed the creation of an “inter-agency group” tasked with studying the “feasibility of introducing the Central Bank’s digital currency (CBDC)” in its the annual report 2017-18.
The RBI research unit in early 2017 published extensive technical documentation provided by the Advanced Institute of Banking Studies of India to clearly conclude that the blockchain technology was “mature enough” to digitize the rupee, fiat currency of India. As reported in August, any digital currency supported by the state, issued by the central bank, will be evaluated as the digital equivalent of the Indian rupee.