India May Issue Its Own Bitcoin-like Cryptocurrency As Legal Tender

Tyler Durden's picture

Less than a year after India launched a shocking "war on cash" when on November 8, 2016 it unveiled a demonitization campaign in an effort to wipe out huge amounts of so-called 'black money' and streamline its largely cash-based economy, which however was called a colossal failure which cost innocent lives and ruined the economy" by Rahul Gandhi earlier this month after it was revealed that 99% of the high denomination banknotes cancelled last year were in fact deposited or exchanged for new currency, even as India's GDP tumbled to 2 year lows...

... on Saturday, the Business Standard reported that while working on creating a legal framework for bitcoin and other digital currencies, the Indian government is considering launching its own bitcoin-like cryptocurrency.

Preempting a report by the BIS released on Sunday, and which recommended that central banks should seriously consider launching cryptocurrencies of their own, the Indian press reports that the Indian government is considering “a proposal to introduce its cryptocurrency similar to bitcoin,” and which will be issued by the Reserve Bank of India (RBI). This state-run cryptocurrency will be called “Lakshmi,” the name of the Hindu goddess of wealth, fortune, and prosperity.

The proposal was reportedly "discussed by a committee of government officials, and the panel found the idea of setting up and running blockchain for financial services useful."

The report comes just days after RBI Executive Director Sudarshan Sen talked about the central bank’s discomfort with Bitcoin at the India Fintech Day conference. He hinted at the time that the government may be introducing its own fiat cryptocurrency which will be issued by the RBI.

“Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely,” he said. Echoing China's own displeasure with the soaring popularity of cryptocurrencies, the RBI executive stressed that the central bank is not comfortable with non-fiat cryptocurrencies such as bitcoin.

Despite the growing resentment toward bitcoin, the Indian government has also been working on creating a legal framework for bitcoin and other digital currencies. Last week, Money Control reported that “the government is going to prepare a framework for bitcoin soon.”  According to bitcoin.com, In April, the same government set up a committee to investigate bitcoin. Last month, Money Control also reported that the committee has submitted its report to the government. It recommended “strict monitoring” of digital currencies, the news outlet detailed, adding that “there is no possibility of immediate restriction,” but the government is also not in favor of promoting them.

The committee has additionally recommended a task force be created comprising of officers from the RBI, the Securities and Exchange Board of India (SEBI), the Income Tax Department, the Central Board of Excise and Customs (CBEC) and the Financial Intelligence Unit. The latter would then monitor the abuse of digital currencies, the news outlet noted.

So with China having already banned exchange-based trading of bitcoin, if not bitcoin itself just yet, and with India seemingly on pace to do the same as it pushes for its own, regulated and central bank-mandated cryptocurrency, the question on everyone mind is will this global crackdown against bitcoin and its peers boost their already near-record high popularity and price, or will it force holders to flee, wary of getting burned further by a wave of governments who have turned increasingly hostile to the ad-hoc cryptocurrencies which are not controlled by the central banks themselves, something Eric Peters hinted at earlier today. If the answer is the latter, will that prompt monetary purists and seekers of central bank inert currencies to finally start buying gold once again?

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BendTheFed's picture

IF you want a ground floor crypto, check out the white paper on this:  Java script embedded crypto>>

Refferral link:

 

https://jsecoin.com/?utm_source=referral&utm_campaign=aff8526&utm_conten... 

 

I threw a couple ETH at it today at a$1 per coin its a nice speculation

Looney's picture

 

India is about to sit Crypto-Shiva.   ;-)

Looney

tmosley's picture

Just like their last scheme failed, so will this one.

Everyone in India surely sees by now that they have elected bandits to lead them.

The question is--will the poopers resist?

NoDebt's picture

Jamie Dimon says this is a fraud.

 

skbull44's picture

And after a few months they'll ban their use...like their cash...

 

https://olduvai.ca

MozartIII's picture

The fuckers never learn. When do the Indians rise up and kill their government? Especially the banker employees????

eforce's picture

I guess this will literally be a shitcoin...

3LockBox's picture

This is the plan for all.

India is taking the lead.

Cashless total authoritarian controlled crypto.

Seems the beta testing was a fabulous success!

 

beemasters's picture

Another Crypto. Every nation will eventually has its own.

tmosley's picture

Nah. A few will try it, and when they fail the others will save themselves the embarassment.

Unlike the peanutz.

Donald J. Trump's picture

Can't help but think somehow the cb's will wipe out trillions (or quadrillions) in debt when they do the mandatory conversion out of the current fiat into their new cryptofiat.  Will this be how they do the "reset"?

SHEEPFUKKER's picture

I didn't know he adopted an Indian daughter

lil dirtball's picture

> Jamie Dimon says this is a fraud.

What Is Not Fraud
(the short list)
_________________________

1.

Squid-puppets a-go-go's picture

fucking idiots want to make their citizens use crypto before they provide hundreds of millions even with electricity.

Fuck me, india is THE case in point as to why crypto's utility is not universal

runswithscissors's picture

Hindunuffincoin...Thank you, come again!

auricle's picture

Jamie Dimon will only support crypto's if they have usury wrapped around them. 

NoDecaf's picture

I am from the Indian govt and I am here to help.
Here, use this bitrupee to buy a fly swatter and some toilet paper.

LostandFound's picture

The people should insist on putting government expenditure on the block chain as well globally so we know what these fuckers are doing with our tax money.

FreeShitter's picture

Looney, Tyler has gone full bittard ;)

0valueleft's picture

Change the name to One'sandzero'shedge!

The central planners's picture

Another reason why to hoard PMs in a crisis i know this governments will be in a rush to get them but in the other hand why they would be interested in my 1 million buck bitcoin when they can create their own.

The_Juggernaut's picture

Will there be a limit on the supply of government crypto? Something tells me I know the answer.

tmosley's picture

It will surely be "issued at will".

DEMIZEN's picture

i want a lot. and i vote.

Mr Pink's picture

What would stop every country from making their own coin?

Why would this not make Bitcoin worthless?

HRH Feant2's picture

Because there can only ever be 20 million BTC. This will probably cause BTC to increase at a faster rate.

Mr Pink's picture

Do you really think boomers and dindus are gonna buy Bitcoin when the government tells them to buy Dollarcoin?

HRH Feant2's picture

That wasn't the question you asked above. You asked why would BTC retain any value. I answered.

Which is why India is being used to beta test implementation. As for people that receive a government check, yes, they will do what the government tells them to do if they want that government check.

A beta test is what programmers and gaming companies do prior to going live, on a mass scale, with a new game or program. Which is why India was chosen as the location for the beta test. To figure out how to make it idiot proof. Meaning anyone with a phone or a tablet and an IQ of 70 will be able to use it.

tmosley's picture

They won't buy it. They will receive it instead of dollars after the dollar collapses, wiping out their savings in the case of the former, and their welfare in the case of the latter.

The central planners's picture

If the top miners changes their mind they can make bitcoin go 40 millions or 100 you make the number. The limitation of a digital asset is a manmade promise not a natural fact since its not an element.

The central planners's picture

ROLF!! of course is true. You've being decieved once again by the bitcoin pumpers.

AE911Truth's picture

The top miners can create a 100 million coin fork that will die without user support. Total waste of money and they know it, so they don't do it.

The central planners's picture

Stop deceiving people the miners can do whatever with the "limitation" without a folk just like they are implementing the segwit.

swampmanlives's picture

Only 20 million BTC, but an infinite number of crypto currencies can be made.

The central planners's picture

Wrong, the same way the top miners are implementing the segwit change they basically can make anychange to the bockchain in the future including its "limitation"

BallAndChained's picture

Text editors are not immutable.

The crypto pumpers just don't understand this when they keep repeating their religious cult mantra of 21 million limit.

Jay's picture

 If you want to impose, by force, a controlled currency on a population you don't need cryptography or a blockchain to do that. The standard, non-transparent, centralized, heavily regulated model is required. They call it crypto to sound all trendy but it's impossible to graft a centralized, non-transparent, regulated currency to a transparent, decentralized, borderless, permissionless currency. The two are completely diametrically opposed.

ZH Snob's picture

let these govts try to compete with BTC or LTC.  once people see it is the same fiat fiasco, they will use the govt coin to buy the real deal.

DEMIZEN's picture

crypto is not dead, its called digital cash.

FreeShitter's picture

Its cares the shit out of them....no two ways about it.

Obsidian Samctum's picture

You peasants are not allowed to walk around with money in your pockets. Only us, your ruler and master can do that.

SHEEPFUKKER's picture

And so it begins. If Modi has tried to ban cash and ban gold ownership, I'm guessing this won't end well with .govie crytpo.

HRH Feant2's picture

Sure, for a population that still shits in the street, is illiterate, and doesn't have regular electric power. Another beta test? I feel sorry for the Indian people. As if their lives weren't bad enough their government shows up and makes their lives even worse!

FreeShitter's picture

"Sure, for a population that still shits in the street, is illiterate, and doesn't have regular electric power."

 

Oh, I thought you meant any hood ass ghetto in america.

asstrix's picture

I am an Indian that live in India. You sound like just another ignorant westerner. Probably a 'murikan or from little britain, The Empire of Toilets.