With the cryptocurrency sector really taking off across the world in 2017, a lot of countries saw this as an opportunity to embrace emerging technology.
It is obvious that blockchain technology and cryptocurrencies have many great benefits. However, a lot of countries did not necessarily understand what the potential of this technology could be and they were also resistant to change.
While a lot of countries have since come around and started to embrace this type of technology there are many other nations that are still resistant.
The likes of South Korea and China, for example, have a ban in place on initial coin offerings (ICOs). India has also been very resistant when it comes to cryptocurrencies. This is why it may come as a surprise to some people that India looks set to launch their own cryptocurrency in the near future.
This is being developed along with the help of the country’s finance ministry and they have made the recommendation for the creation of this token which will be backed by the government. They are actively conducting relevant research and development to see what the best way to launch this token would be.
The panel tasked with this project was put together in December of 2017 and their main goal was to create regulations for the country’s crypto sector. Initially, their report was to be submitted by July, but their deadline was extended to the end of 2018.
The country’s central bank called the Reserve Bank of India has also been looking at the possibility of having a government back digital token released.
It doesn’t look too good for the cryptocurrency sector in the country. If a government-backed token is released, they may end up banning all other tokens. Venezuela is the main example used for a country issuing a government-backed digital currency.
Whatever the case may be, investors in India will be closely watching the evolution of this idea to create a national digital currency.