Supported by Government of India, Digital Rupee Issue Strategy Developed

The National Institute of Smart Governance (NISG), with the support of the Government of India, has publishedstrategy document for creating a digital Indian rupee on a managed blockchain.

Judging by the published document, the non-profitThe NISG organization proposes to the Indian authorities and the Reserve Bank of India (RBI) to issue a state cryptocurrency on a controlled blockchain with restricted access.

“As an alternative to open blockchainslike Ethereum running its own cryptocurrency, it is strongly recommended that the Government of India, in collaboration with the RBI, release a digital Indian rupee on a governed blockchain where transactions will be processed using a Turing-complete virtual machine, allowing decentralized applications to run.”

NISG emphasized the need for clearregulation of the cryptocurrency and blockchain industry in the country, which could solve many pressing problems in the Indian industrial sector. However, NISG recommended taking a “softer” approach to regulation, as current Indian legislation limits the potential of emerging technologies and prevents blockchain from developing to its full potential.

Let us recall that in April 2018 the Central BankIndia has banned banks from processing cryptocurrency transactions, and this month clarified that by doing so it was shielding financial institutions from the risks of dealing with crypto assets. In addition, six months ago, Indian Finance Minister Anurag Thakur said that cryptocurrencies in the country are not prohibited due to the absence of a separate law to address issues related to digital assets.

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