RBI to introduce cryptocurrency | Fusion - WeRIndia

RBI to introduce cryptocurrency

RBI to introduce cryptocurrency

Cryptocurrency is a digital currency or virtual currency. It is intended to work as a medium of exchange which facilitates secure transactions utilizing the cryptography.

It can be concluded that cryptocurrency is used as an alternative currency for a normal currency.

Bitcoin is the first decentralized cryptocurrency. Even though, many such cryptocurrencies came into existence, Bitcoin is the most widely used currency.

However, several people alleged that the use of Bitcoin is a fraud as it will ‘blow up’ in the end.

As the market for cryptocurrency is being raised, many countries see the need of using cryptocurrency as an alternative to the real currency.

Countries such as China, Estonia and Russia are considering having their own form of cryptocurrencies.

There has been a restriction and ban on using Bitcoins by Chinese and Russian governments in the last couple of weeks.

India is also mulling to have its own cryptocurrency. According to Business Standard report, there is a proposal for the Reserve Bank of India to consider this and a committee of government officials discussed on this matter. The sources state that the government might consider naming the cryptocurrency as ‘Lakshmi’.

Indian government is mulling to have its own cryptocurrency which probably falls in the sphere of the RBI so that it can be controlled by the authority. It is anticipated to have an amendment in this context in the Currency Act. Yet, it is a long process to be implemented if the report is true.

RBI’s executive director, Sudarshan Sen earlier in the last week said that there is a discomfort with Bitcoin due to the severe worldwide regulatory scrutiny. At that time he gave a clue about India’s own cryptocurrency speaking that India needs its own such currency.

Warnings have been issued by the RBI on utilizing Bitcoins to its users in India related to the risk associated in dealing with the cryptocurrency.

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