What is Laxmicoin, possibly the first legal Indian cryptocurrency?

With the massive surge in the popularity of cryptocurrencies such as Bitcoin, it appears India might soon have its very own cryptocurrency, dubbed the Laxmicoin.

Originally launched in 2012, Laxmicoin has been stuck in the legal quagmire entrapping several non-fiat currencies around the world. A fiat currency is any currency that has no intrinsic physical value, but whose value is established by government decree. For example, most national currencies around the world, including the Rupee and the Dollar, are fiat currencies as their values are dictated by the government.

Non-fiat currencies such as the Gold Standard have more or less been effectively phased out, as they require adequate physical stockpiles to maintain their value. However, the new breed of digital cryptocurrencies such as Bitcoin blur the boundaries between fiat and non-fiat – they don’t have any physical value as such, but are also not government-controlled. This has created uncertainties about their role in the modern financial system.Recently, RBI Executive Director Sudarshan Sen said that the government is “uncomfortable with non-fiat currencies”, mentioning Bitcoin as a particular example. In such a scenario, the future of Laxmicoin, India’s very own “non-fiat” cryptocurrency is quite uncertain.Laxmicoin is a digital cryptocurrency created by Raj Dangi and Silicon Valley-based Mitts Daki. As per the founders, Laxmicoin is expected to have a total coin supply of 30 million that will use blockchain technology to function similar to Bitcoin. However, the 2014 actions by the RBI against Indian bitcoin exchanges forced the founders to postpone the launch. While many bitcoin exchanges have resumed service, Laxmicoin’s founders have been adamant about putting off their launch until they get explicit approval and consent from the RBI.