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According to reports, the Indian central bank has established a special unit in charge of monitoring emerging technologies such as those related to cryptocurrencies. Its members will be required to research, draft rules and, in the future, to oversee the development of digital resources, blockchains and applications of artificial intelligence.
Read also: Report: North Korea to hold a cryptographic conference
RBI team to track cryptographic developments
In an obvious attempt to improve its capacity in the field, the Reserve Bank of India (RBI) has brought together experts in a new unit that will be responsible for monitoring cryptography, blockchain and artificial intelligence technologies, according to The Economic Times citing two familiar sources with the RBI plans.
According to the report, the new unit will have the task of researching the emerging technology, but also of elaborating rules and supervising the sector in the future. One of the individuals mentioned in the article commented:
As a regulator, the RBI must also explore new emerging areas to check what can be adopted and what not. A central bank must be at the top to create regulations. This new unit is on an experimental basis and will evolve with the passage of time.
No formal announcement on the new team has been made yet and the RBI has not answered the media questions for further details. However, the publication notes that the unit was set up about a month ago and the bank's management has already named its leader.
The outlet also mentions another expert on the subject. According to Piyush Singh, managing director of financial services for Asia Pacific and Africa at Accenture, unless the regulators are part of the ecosystem, they understand and have a clear indication of what is accepted and what is not, they can not neither protect the regulated industry, nor consumers who use it. Singh believes the RBI is doing the right thing at a time when new technologies are changing business models.
Research, despite warning and prohibition
The news on the formation of the research unit comes after more warnings against the activation of cryptographic transactions issued by the Indian central bank. In December of last year the RBI highlighted a series of risks related to economic, financial and legal cryptography. This year, the bank has ordered all regulated financial institutions to stop providing services to businesses and individuals involved in cryptocurrencies.
The ban came into force in July, despite attempts by representatives of the encrypted sector to challenge him in court. In two hearings of petitions submitted, the Supreme Court of India did not grant a stay against the ban and eventually scheduled the final hearing for September 11th.
Meanwhile, Indian officials have worked on a regulatory framework for the crypto industry. The first statements according to which the settlement projects would be ready in July were subsequently followed by another estimate: the Indian government should now issue detailed cryptocurrency guidelines by September, as reported by Notizie.Bitcoin.com. Consultations with stakeholders are ongoing.
Do you think that the RBI will change its attitude towards cryptocurrencies? Share your thoughts on the topic in the comments section below.
Images kindly granted by Shutterstock.
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