The rise of cryptocurrencies has led to the formation of a parallel banking system which has world governments concerned. A parallel, transparent banking system where anonymity is the key may not sound like a big deal today, but as more users begin making use of cryptocurrencies, it may lead to the formation of an undeground economy. Many governments oppose this idea. The Indian government has a more progressive view and is reportedly working on their own cryptocurrency: Lakshmi.
Named after the Goddess of wealth, Lakshmi is associated with all things money. In India Lakshmi-Pooja is the worship of money and the word Lakshmi itself is used as a synonym to money.
Finance Minister Arun Jaitley has been leading meetings involved with decisions over the status of Bitcoin in India. There have been contrasting views and as per reports from Business Standard, it now looks like the country might soon get it’s own govt backed cryptocurrency: Lakshmi.
Reserve Bank’s executive chairman Sudarshan Sen commented on the matter saying that the bank is not comfortable with the rise of a non-fiat currency system. Sudarshan commented on the matter saying, “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.” This drops a major hint that such a currency might be on it’s way.
While this is purely a speculation but if Lakshmi does arrive, it might as well be a turning point in the way the Indian financial infrastructure functions. Interestingly there might have to be amendments made to the Currency Act to accommodate this new form of currency.
There have been many controversies around Bitcoins in India, and many have claimed that it is giving rise to black money suspecting that people are selling off Bitcoins in exchange for cash. The introduction of Lakshmi might change things.