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Indian Government is thinking about a state-backed cryptocurrency, reports

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The government of India is assessing the probability of issuing a state-backed cryptocurrency, according to reports from local media outlet Quartz on October 10.

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An anonymous source from senior management of the government said to Quartz that they have set up a panel to discuss on blockchain and cryptocurrencies. Meanwhile, as per Quartz’s source, the government is seeking ways to support blockchain related studies, and launch of a state-backed crypto is just another option to think on.

The source also revealed that the discussion panel is also thinking about new amendments to the current cryptocurrency bill. One such proposal is to make it a punishable offense to keep cryptocurrencies without informing the government.

Finance Ministry of India created the panel in December 2017 to analyze various aspects of cryptocurrencies and it’s expected to present its reports by late 2018.

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Currently, after the notice of Reserve Bank of India (RBI) in April this year, providing service to cryptocurrency users is banned for the financial institutes. Since then RBI has also revealed its intention to explore innovative ways of blockchain technology.

RBI’s decision is challenged at the highest legal body of Indian Judicial System, The Supreme Court of India is currently under hearing.

It’s not something unusual for a county to launch a state-backed cryptocurrency, South American country Venezuela is one such example. Petro, the official digital currency of Venezuela is backed by its oil, gold., diamond and iron reserves.

China and Iran are among the list of countries speculating on the idea of creating a state-backed cryptocurrency.

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