Despite being a turbulent time for cryptocurrency in India, the country’s government is researching the viability of switching out the smart travel cards for its own central-bank issued crypto tokens.
An Indian finance ministry official and a member of the committee tasked with the research for the bank-based crypto token stated:
“The committee is examining if crypto tokens can be used to replace smart cards such as metro cards in the public sector to start with. Similarly, in the private sector, it can be used in loyalty programms such as air miles where its use is limited to buying the next ticket and can’t be converted into money.”
The Inter-Ministerial Committee (IMC), which was created back in 2017 by India’s Ministry of Finance and is made up of members for the country’s taxation authority and India’s Department of Economic Affairs (DoEA), as well as filling its ranks with representatives from the central bank, the State Bank of India, as well as other government departments.
The IMC is responsible for the creation of a regulatory infrastructure in the cryptocurrency market and is tasked with the reviewing the viability of crypto tokens in the public sector, while exploring how the international community is approaching the subject.
The IMC is also to provide measures to stop money laundering activities via crypto-based methods.