Central Bank of India Forms Special Unit to Track Blockchain
The Reserve Bank of India (RBI) has decided to form a special unit to track emerging technologies. The main intention is to better understand how blockchain, artificial intelligence, and cryptocurrencies work.
RBI Introduces a Special Unit
The RBI is clearly trying to improve its capacity to understand the latest technologies. In order to do so, it has gathered a team of experts that will be tracking these innovative technologies. The information has been released by The Economic Times that quoted sources familiar with the plans.
As per the report, the unit will be preparing rules around these technologies. Additionally, it will also be supervising the sector at some point in the near future.
One of the individuals quoted by the news outlet commented:
“As a regulator, the RBI also has to explore new emerging areas to check what can be adopted and what cannot. A central bank has to be on top to create regulations. This new unit is on an experimental basis and will evolve as time passes.”
At the moment, the RBI has not given any information about the new unit. However, The Economic Times says that there is an already appointed leader.
Piyush Singh, managing director of financial services for Asia Pacific and Africa at Accenture, said that the RBI is doing the right things. New technologies are changing business models. Because of that, institutions need to learn about these new paradigms and technologies.
The Reserve Bank of India has been attacking virtual currencies. Since a very long time, it is warning individuals to stay away from the crypto market. Earlier this year, the bank ordered to financial institutions to stop providing services to individuals and companies dealing with cryptocurrencies.
In the past, the Supreme Court of India decided not to grant a stay against the ban. The next hearing will take place on September 11.
Indian officials are now working on a regulatory framework for the whole crypto space. Other countries have been trying to control cryptocurrencies as well. Nevertheless, it has been very difficult to find examples of regulations that allowed the space to grow and protected investors.