The Central government is considering a proposal to introduce its cryptocurrency
similar to Bitcoin.
Sources close to the development said that the proposal was discussed by a committee of government officials, and the panel found the idea of setting up and running blockchain for financial services useful.
Sources also said the government might name its cryptocurrency
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."
Running a ledger-like blockchain cryptocurrency
is required for settlement and the RBI
and government officials have said that they are not comfortable with Bitcoin.
China, Russia, and Estonia are said to be considering having their own cryptocurrencies.
A few days ago RBI
Executive Director Sudarshan Sen
had talked about the central bank’s discomfort with Bitcoin, which has recently come under intense global regulatory scrutiny.