Indian Government to Explore Own Crypto Tokens Use For Public Services and Loyalty Programs
Indian Government Deliberates Over Usefulness Of Cryptocurrency For Metro Cards And Loyalty Programs
Ever since India’s RBI ban, which prevents banks from getting involved in crypto transactions, one would have assumed that the country would take more time to reflect cryptocurrencies altogether. Turns out, an inter-governmental committee, dubbed, India’s “Inter-Ministerial Committee (IMC)”, has been considering the concept of tokenization for both public and private sectors.
While the IMC is currently responsible for understanding the specs of cryptocurrencies and feasible regulatory frameworks, the DNA India reported that possible crypto tokens may arise. In particular, it has been revealed that the existence of a token will not be an alternative to the Indian Rupee, but rather a token version of the country’s currency.
As per the report, the efforts being reflected upon either entail
“crypto tokens […] to replace smart cards such as metro cards in the public sector. […] In the private sector it can be used in loyalty programs, such as air miles where its use is limited to buying the next ticket.”
The IMC, as per CCN’s report, is a combined effort of the Depart of Economic Affairs (DoEA), taxation establishments, State Bank of India and other ministries.
India has been continuously expressing their need to better understand what cryptocurrencies are and how regulations will be implemented in such a way that does not create a hindrance for development. As a first step, DNA India reported that the country will be assessing its likes, while exploring the different ways other countries have been dealing with the regulatory aspects and heightened crimes.
The reason as to why India is taking its time in coming up with a final say, as per DoEA Secretary and IMC Lead, Subash Chandra Garg’s April interview with DNA India, is due to the fact that the technology is “changing every now and then.”
This news is surely to confuse several crypto investors, as India is known for praising the blockchain technology for its potential to revolutionize many industries, while completely shutting down the concept of cryptocurrencies.
Bitcoin Exchange Guide previously noted that the country preferred to view blockchain technology and cryptocurrencies as two separate concepts, focusing completely on the former, therefore, this is definitely unexpected.
Do you think India will finally come to an understanding with cryptocurrencies? Will they finalize their decision on cryptocurrencies on the scheduled date of September 11, 2018? Comment below.