Cryptocurrency always caught people's interest. Even more so since Elon Musk's tweets about bitcoin and the way its value shot up. What was once a thing for only tech-savvy people is now common knowledge for non-technical people as well.
The Indian perspective about cryptocurrency or digital currency has changed drastically. When bitcoin, the first cryptocurrency was introduced, people barely understood cryptocurrency and blockchain technology. But now, India is a country with quite a few promising cryptocurrency-based startups like Zebpay, Coindelta, btcxIndia, etc.
One of these startups is Laxmicoin, India's first cryptocurrency.
Laxmicoin is India's answer to foreign cryptocurrencies, created by Raj Dangi and a Silicon Valley-based brainiac Mitts Daki. According to the founders, Laxmicoin will use blockchain technology, similar to bitcoin, and will expectedly have a total coin supply of 30 million.
Team Laxmicoin believes that there are only a handful of people who truly understand the digital currency technology to mine cryptocurrencies. Mining cryptocurrencies required specialized hardware, a stable internet connection, and enough power for the hardware to run 24/7. So out of all the Laxmicoin that has been premined, only 30% of it will be distributed among people who cannot mine the currency on their own. They also want to donate Laxmicoins to NGOs, colleges, and use it to support other social causes.
"India is a developing country. If you will leave all the mining for people, it won't be practically possible. You need special machines for that, you need good power, and you need good Internet connections to mine them. That's why we have decided some percentage will be pre-mines and some will be mined after a certain period of time", said Deepak Mantwal from team Laxmicoin.
The team will also make sure to keep 20% of the pre-mined currency to strengthen the economy while the rest 50% will be available for purchase.
Originally launched in 2012, Laxmicoin has been stuck in the legal quagmire with several non-fiat currencies from all around the world. A fiat currency is a currency with no intrinsic physical value but whose value is set by government decree, like the Rupee and Dollar whose values are set by the government.
Digital currency or cryptocurrency is now blurring the lines between fiat and non-fiat currencies. For example, bitcoin has no physical value and is not controlled by the government either. But this has created vague uncertainties about its role in the modern financial system.
RBI Executive Director Sudarshan Sen stated that the government is "uncomfortable with non-fiat currencies", talking about Bitcoin as an example. This implies that the future of Laxmicoin, India's version of a "non-fiat" cryptocurrency is uncertain.
Despite these limitations blocking the smooth launch, the founders are adamant to get explicit approval and consent from the RBI.
If granted permissions on time, Laxmicoin could have been one of the best blockchain projects. The team had decided the best uses of this blockchain technology called Rover Network. Land registry is a major concern in India. If used blockchain, land registries cannot be manipulated. This will solve the double registry and encroachment problems. Another use case for Laxmicoin's blockchain technology Rover Network is as a voting platform. Every time vote counting and voting machines are blamed during the elections, voting records on a blockchain cannot be manipulated either.
The banking sector can breathe a sigh of relief if blockchain technology is employed. People in power or the common public will not cheat banks because loan officers cannot approve loans more than the assets. When they default, the assets will start moving to banks immediately without any 3rd party involvement.
If everything goes according to the founder's plan, Rover Network and Laxmicoin will be among the top 5 blockchain projects in the world.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.