According to a senior government official, a panel is studying government-backed cryptocurrencies
India’s Ministry of Finance Panel, formed in December 2017, might propose a state-backed cryptocurrency. Among the topics discussed by the panel are an amendment of the country’s Currency Act and whether a government-backed digital asset is a decentralized or centralized system.
The country’s central bank, Reserve Bank of India, also formed its multi-department panel to discuss such possibility.
India’s government is concerned that cryptocurrencies may be used for fraud and money laundering. Since July, the central bank prevented banks from continuing business relationships with crypto exchanges and traders.