If you thought cryptocurrency was losing its steam and become unpopular with the recent bashing it received from JP Morgan boss Jamie Dimon and the Chinese government. You are terribly wrong. The latest show that crypto currency is gradually winning back more believers with the latest being the Indian government!
According to a publication by Business Standard, "Sources close to the development said that the proposal was discussed by a committee of government officials, and the panel found the idea of setting up and running blockchain for financial services useful."
The publication further said that the government officials are uncomfortable with Bitcoin as the cryptocurrency for settlement over a blockchain and are, therefore, seeking for a solution that would include a cryptocurrency that is backed by government.
Though not yet approved, it is expected to fall in the domain of the Reserve Bank of India once the government makes a final decision on it. The government may also need to amend some acts like the 'Currency Act' in order to provide the appropriate legal framework needed to make it work. However, it is expected to pass through some lengthy process before everything takes the expected shape.
It also added that the officials had discussed the possibility of naming the cryptocurrency "Lakshmi", a name after the goddess of wealth and prosperity in Hindu.
It would be noted that CCN also reported recently, that the Central Bank of India was already making some researches regarding currencies because of their intention of digitalizing their fiat currency, the rupee.
RBI executive director Sudarshan Sen had revealed, while speaking at a FinTech conference last week, that "a group of people within the RBI "are looking at fiat cryptocurrencies" as an alternative to the India rupee".
Should India finally make up her mind to float her digital currency, it is likely that Bitcoin might further be banned in the country in order to give more support to its own digital coin, though the finance minister Arun Jaitley admitted last month that the few years have shown a notable growth of india's bitcoin market.
India is not the only country that has recently indicated interest in creating its own cryptocurrency, Russia, Estonia and China are also said to be giving it a serious thought.
What would be the fate of Bitcoin?
The fate of bitcoin hangs in the balance, because as more and more countries seek to create their own cryptocurrencies, the tendency is that they may end up looking for ways of frustrating bitcoin which they already consider a fierce rivalry. While some countries might place it under severe regulation, it is possible that others might ban it outright.
China is already taking a hostile stance towards bitcoin and with time, others may toe the same line. We all know that market demand plays a major role in determining the prices of cryptocurrencies. So, if more countries place a ban on bitcoin, its price will certainly fall.
We all keep watching as events unfold.
