Government planning to come out with its own cryptocurrency: Sources

Representational image: Bitcoins

New Delhi: With virtual currency gaining traction among investors, government is planning to come out with its own cryptocurrency sources told Zee Media.

Although Indian government has time and again reiterated that cryptocurrencies are not legal in India, sources told Zee Media that the government may come out with a framework on this by September this year.

Sources also added that the government will also frame policy related to cryptocurrencies by the second week of September. The government is reportedly in talks with RBI and SEBI to come with a final guideline on virtual currency.

Presenting his Budget speech, then Finance Minister Arun Jaitley had clarified that crypto-currencies were illegal and the government would not recognise them.

In April, the Reserve Bank had announced a study to explore introduction of fiat digital currencies which can be issued by it. An interdepartmental group was constituted to study and provide guidance on the "desirability and feasibility" to introduce a "central bank digital currency".

It can be noted that across the world there has been heightened concerns over Bitcoins and their safety as they are not regulated by any governments/central banks, leading to concerns over money laundering.

There were media reports that the government was mulling the introduction of its own virtual currency called "Laxmi", however nothing was officially announced.