Mukesh Ambani-owned Reliance Jio Infocomm plans to launch its own cryptocurrency called, JioCoin, Mint reported citing an anonymous source Cryptocurrency has been in the news for the past one and half month as Bitcoin, the most traded among them, hit around $19,000, however, fell lately to $13,000. There are multiple applications of blockchain (for the company). "The team would work on various blockchain products", a person familiar with the development said anonymously to Hindustan Times.
If the report is anything to go by, Reliance Jio plans to build a 50-member team of young professionals, led by Mukesh Ambani's elder son Akash Ambani, to work on the complex blockchain technology under the JioCoin project to mine the cryptocurrency. While blockchain technology has many aspects, cryptocurrency is one of its most popular applications. In straightforward terms, blockchain decentralizes data without it being duplicated. The information is held on blockchain through a shared database which can be accessed on a real-time basis. We can deploy smart contracts.
It may be noted that Government of India had issued warning against using cryptocurrencies.
Blockchain technology can also be used to develop applications like supply-chain management logistics. The loyalty points paired with different Jio services could be eventually based on JioCoin.
Altogether, the Indian government has advised against digital forms of money, expressing that virtual monetary standards were not upheld by resources and acted dangers such like illegal tax avoidance.
There is real risk of investment bubble of the type in ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard earned money.
According to the Ministry of Finance the users, holders, and traders of VCs have already been cautioned three times, in December 2013, February, 2017 and December, 2017, by the Reserve Bank of India about the potential financial, operational, legal, customer protection and security-related risks that they are exposing themselves to by investing in Bitcoin and or other VCs.
Union Finance Minister Arun Jaitley recently said that the government was awaiting an expert committee's report before it sets up regulations on the use of cryptocurrencies.
Cryptocurrencies are digital or virtual currencies that use cryptography to secure and verify transactions.