Avoidable 'Lakshmi'

India does not need its own cryptocurrency

The government is reportedly considering the possibility of introducing its own cryptocurrency, code-named “Lakshmi”. Being backed by fiat, this would provide an alternative to popular non-fiat cryptocurrencies such as bitcoin and ethereum. If it is introduced, “Lakshmi” would run on some variation of the blockchain technology employed by bitcoin that verifies every trade and rules out dual transactions employing the same coin. The introduction of such a new cryptocurrency, which would be legal tender alongside the rupee, requires legislative action in amendments to the Currency Act. The new currency would also, presumably, be subject to the same capital account controls