Some state governments have already implemented blockchain based projects that do not require cryptocurrencies. Then why do we need cryptocurrency? mostly comes in mind

[rohit-lotlikar-b6b3af34 (Rohit Lotlikar)]

As discussed above, these projects are akin to building a local area network or a home wifi, and not the internet. Such localised projects can and should co-exist with other private innovation. Further, such projects, whether it is the ‘digital Rupee’ or state-run land records management, will require the government to build the entire infrastructure at its own cost. When these projects use an existing privately-built cryptocurrency network, the infrastructure is already built and can be used on a pay per use model. It is relatively easy to replace the infrastructure and move to a better service. Should such government services be operated on privately operated infrastructure? Yes, many government applications operate on the open internet. Additionally, the true potential of this technology is realised when it is used in a decentralised fashion. When centralised (i.e., when it is run by the government or an organisation on its own infrastructure), the records are only as safe as the central server is. A decentralised project on the other hand does not have a single point of attack and is considered highly secure.