The Indian Central Bank forms a new unit to counter the Blockchain regulation


The Indian central bank would have formed a new unit within the organization to address research and regulatory frameworks for new technologies including blockchain, cryptocurrency and artificial intelligence.

According to a report by Monday's Economic Times citing family sources to the issue, the Reserve Bank of India (RBI) launched the new unit about a month in a move to "research and eventually draft rules" to supervise these emerging technologies.

"As a regulator, the RBI must also explore new emerging areas to verify what can be adopted and what it can not … This new unit is on an experimental basis and will evolve with the passage of time," said one of the sources .

While the RBI did not officially announce the unit, the news followed the central bank's report detailing its blockchain processes and hinted at a move to create blockchain regulatory frameworks.

CoinDesk reported last year that the Institute for Development and Research in Banking Technology (IDRBT), founded in the years & # 39; 90 by the RBI, was planning to implement its blockchain platform.

Based on a fintech report published by the RBI in February, IDRBT has already tested a proof-of-concept that established commercial financial transactions via a distributed network with participants including banks and sellers of payments.

In addition, the report indicated that the central bank was also planning to put such technological developments in a regulated environment, stating:

"In order to ensure that regulations keep pace with technology developments affecting space of payment, global technology developments such as distributed registers, blockchain, etc. will be monitored and the regulatory framework, as required, will be implemented. "

The news also comes at a time when the RBI strengthens its position on cryptocurrency trading, havin g has banned national banks from providing financial services to exchanges of Indian cryptocurrencies

Image of Indian banknotes via Shutterstock

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