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The Reserve Bank of India (RBI) would establish a new internal unit dedicated to the research and regulation of new emerging technologies, in particular cryptocurrency, blockchain and artificial intelligence (AI). [19659003] Holding a formal announcement, the RBI has discretely formed a new unit for research and possibly supervising disruptive technologies through draft rules in the future, reported the Economic Times on Monday
. The unit has been operating for a month and already sees a general manager who has not yet been appointed to lead him, according to the report, citing two sources familiar with developments at the central bank.
One of the reported sources adds:
"As a regulator, the RBI also has to explore new emerging areas to see what can be adopted and what does not – a central bank must be at the top to create regulations. an experimental basis and will evolve over time. "
The development comes at a time when the central bank, after years of public caution against the trade in cryptocurrencies like bitcoin, claimed that it was necessary to regulate the sector during an audition of the Supreme Court in July of this year.
In early April, the RBI issued a circular to all regulated financial institutions, including banks, to prohibit them from transacting or providing services to companies associated with cryptocurrencies. The effect of the mandate had a paralyzing effect on the trade in domestic cryptocurrencies and saw the exchanges of cryptographies opposing the banking ban which is now being challenged in the Supreme Court.
Senior government officials – not directly associated with the central bank – Those who are part of a discussion group on industry regulations have excluded a total ban, insisting that cryptocurrencies will likely be classified as commodities.
Cryptocurrency fueled by Blockchain
In a significant support for the decentralized underlying cryptocurrency technology, the central bank's research arm insisted that the blockchain technology was "sufficiently matured" to allow the digitization of the fiat currency Indian, the rupee, in a digital currency. The white paper supporting those noteworthy statements was published in January 2017.
The RBI executive director confirmed the search for a "fiat cryptocurrency" at the end of 2017 with the mention of the "Lakshmi coin" token after the Hindu goddess of wealth and prosperity.
The RBI is also developing its own blockchain platform to enable and support multiple commercial banking applications in the country. As described above, the central bank has already established various areas in the banking, financial and registration services for the blockchain implementation
RBI Calcutta image from Shutterstock.
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