RBI Denies Setting Up Crypto Research Unit. The Reserve Bank of India has officially denied the creation of a new internal unit dedicated to cryptocurrency, blockchain and artificial intelligence (AI) research.
In late August, India’s most-popular financial daily, the Economic Times, reported that the Reserve Bank of India (RBI) had formed a new unit for researching and even regulating disruptive technologies like blockchain. The unit was operational for a month at the time. The report claimed after citing two anonymous sources purportedly aware of developments at the central bank. Several other platforms picked the news. This went viral spreading all over the media.
However, in clear denial of the report, the RBI has refuted the claim altogether by revealing there was no crypto-focused formal unit within the central bank. The central bank was responding to a right to information (RTI) query by Naimish Sanghvi, who runs Indian industry publication, Coin Crunch.
RBI Denies Setting Up Crypto Research Unit. This, despite the RBI revealing he original ET report in August that it had formed an ‘inter-departmental group’. This is to “study and provide guidance on the feasibility to introduce a central bank digital currency (CBDC)”, in its Annual Report 2017-18.
In early 2017, the RBI’s own research arm published a white paper. It was on the merits of blockchain technology for the banking and financial sector domestically. In it, the central bank’s Institute for Development & Research in Banking Technology (IDRBT) – the country’s foremost banking research institute – concluded that blockchain technology had “matured enough” to power the digitization of India’s fiat currency, the rupee.
The embracive stance toward blockchain technology was further underlined by Indian prime minister Narendra Modi. The calling for “rapid adaptation” of the decentralized technology in a speech earlier this year.
The RBI has been opposing cryptocurrency trade right from the beginning of this year. All the financial institutions instructed to prohibit all transactions of digital coins. Also, crypto trade as a result of the ban. But, no such rule implied on blockchain technology. In fact, the government has already begun implementing within various departments already.