The government of India has decided to issue its own token for financial transactions

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Currently, the government of India is considering the feasibility of creating smart contracts for their own crypto-currencies issued by the Central Bank.

A senior official from the Ministry of Finance and a member of the Committee doing research for the applicability of the cryptocurrency, said that currently the Committee is exploring the use of a special marker of crypto-currency key for replacement of smart contracts in the public sector.

In addition, in the private sector they want to implement tokens in the areas of loyalty program for air miles, where they cannot be transferred back to the money, he said.

The inter-Ministerial Committee (IMC) was first established in the beginning of last year the Ministry of Finance and is a member of the tax authority and the Department of Economics (DoEA), as well as a representative of the Central Bank, the State Bank and several other government of India offices.

IMC was also tasked to develop a regulatory road map for the promotion of cryptocurrency and ease of use of digital currency in the public sector, partly by exploring international and governmental policy and legal framework in relation to cryptocurrencies.

The Committee was asked to find specific measures used by governments to combat money laundering through crypto-currencies.

Private token in India

As reported by the media on Monday, the Indian government is on the verge of introducing a special token for financial transactions, stressing that this project is significantly different from the cryptocurrency, which is currently banned in the country.

The tokens will be different from cryptocurrencies, as they are a means of financial transactions only in India.

Author: Andrey Lyamzin analyst Freedman Club Crypto News

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