The Indian Central Bank denies the "formal creation" of the Blockchain unit


The RBI denied the "formal creation" of a unit for the search for artificial intelligence and blockchain technology, according to a report.

The clarification after an investigation by Coin Crunch India comes weeks after the central bank is said to have created the alleged unit to "research and possibly formulate rules" for emerging technologies.

In an article about the alleged creation of the unit, the Economic Times quoted two anonymous sources that were "familiar with the central bank's plans".

However, Naimish Sanghvi, founder of Coin Crunch India, filed a request for legal information (RTI) hoping to confirm the rumors and look for more information about the department, such as who was heading the unit, and so on.

Sanghvi received a response on September 26, denying the declared effort.

The RBI said:

"There is no new unit formally created in RBI for the purpose (Blockchain, Crypto and AI) mentioned in the RTI query".

Thus, while the RBI has formed a unit to "study and provide guidance on the desirability and feasibility of introducing a digital currency of the central bank", it appears that its position on the use of cryptography has not been in general attenuated.

In a move that has shaken the local cryptography industry and even caused the cessation of the activities of foreign exchange operators, the RBI issued a circular ordering banks to stop services to cryptocurrency businesses in April . With fiat currency withdrawals and deposits impossible as a result, trades have moved to survive with encryption to cryptography, but volumes have suffered.

In response to the ban, various entities, including exchanges, have filed several petitions of opposition to the Supreme Court (SC) in what has become a combined case.

The last hearing saw the postponed case, although it is expected to resume early.

See the RTI response from RBI on Scribd below (provided to CoinDesk by Naimish Sanghvi):

Image of bitcoins and rupees via Shutterstock

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