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.”
The RBI recently clarified its position on cryptocurrency. According to the apex bank, though some restrictions have been placed, there is no outright ban.