The popularity of crypto-currencies, like Bitcoin, could encourage India to have its own digital currency, called Laxmicoin. Initially launched in 2012, this crypto-currency has not been able to develop because of the suppression of the indian government. The currencies that are not fiat, such as Gold, have more or less been ruled out of the market effectively, because they have a need for physical inventories is adequate to maintain their value.
Moreover, the new generation of crypto-currencies, like Bitcoin, blurs the boundaries between fiat and non-fiat. Recently, the executive director of RBI, Sudarshan Sen, has said that the government was uncomfortable with the currency not fiat. In such a scenario, the future of Laxmicoin, a crypto-currency not fiat India, is quite uncertain.
Check out below a video illustrating the decision of the RBI to consider the approval of the Laxmicoin :
What is a Laxmicoin ?
Laxmicoin is a crypto-currency created by Raj Dangi and Mitts Daki. According to the founders, Laxmicoin is expected to have a total supply of 30 million pieces, using the technology Blockchain to function as the Bitcoin.
However, the actions of 2014, the RBI against the trade of Bitcoins have forced the founders to defer the launch. While many businesses trade in Bitcoins have resumed their service, they were keen to delay the launch of Laxmicoin until they get the approval of the RBI.
The challenges facing the Laxmicoin
The need for a crypto-fiat currency is mainly due to the application of the technology Blockchain to streamline financial services. The technology itself is rather complicated. A committee of representatives from the SEBI (Securities and Exchange Board of India), the RBI, the ministry of taxation and other financial institutions would have identified the potential for the use of the technology Blockchain.
If the Laxmicoin obtains the status of legal currency, it could facilitate a radical change in the way financial transactions are carried out in India. In addition to the increase of financial transactions, a crypto-fiat currency would simplify the operations of PDS, eradicating surcharges on card payments.
Source : YourStory