As opposed to cryptocurrency as India is, the country might be considering the development of its own central bank digital currency (CBDC). India might also develop a digital rupee as well as a national blockchain.
India’s National Institute for Smart Governance (NSIG) has revealed a draft document that describes a tentative plan for India’s national blockchain. The document specifically suggests a Central Bank Digital Rupee (CBDR) which will be issued on a national blockchain. The NSIG also says that the blockchain should be permissioned and be issued by the government and the Reserve Bank of India (RBI).
“As an alternative to Public Blockchains that operate with native cryptocurrency, like Ethereum, it is strongly recommended that the Government of India along with RBI come out with a Central Bank Digital INR (CBDR) administered over a Public Permissioned Blockchain that processes transactions through a Turing Complete Virtual Machine allowing decentralized applications to run on its platform.”
Along with its recommendations, the NSIG also called for clarity in India’s blockchain sector. According to the Institute, the sector can only grow with proper laws enforced, if there is no uncertainty about what the law expects.
The RBI recently clarified its position on cryptocurrency. According to the apex bank, though some restrictions have been placed, there is no outright ban.