Author: Jagdish Kumar, India
In order to keep an eye on the latest development in the crypto and Blockchain technologies alsong with artificial intelligence, India’s Reserve Bank of India (RBI) has set up a new research unit.
The new unit has been set up specially to researching and regulating new emerging technologies, specifically cryptocurrency, blockchain and artificial intelligence (AI).
A business daily quoting a government source said that the research unit has been operational since last month and is headed by a general manager, whose name was not disclosed.
The source of RBI also said that being a regulator, 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.
RBI has been watching the crypto and Blockchain space for a long time and has been warning citizens not to invest in Bitcoin or other cryptocurrencies citing huge fluctuations.
Lot of scams have also been reported in cryptocurrencies, in which many citizens have lost millions of dollars.
In February 2018, RBI has come out with a report saying that The Institute for Development and Research in Banking Technology (IDRBT) has already tested a proof-of-concept for settling trade finance transactions via a distributed network, with participants including banks and payment vendors.
IDRBT is an institution exclusively focused on banking technology, established by the RBI in 1996, the institution works at the intersection of banking and technology.
Apart from working on launching its own crypto currency named Laxmi coin, which is also under development, RBI has also developing its Blockchain platform that will enable multiple commercial banking applications in the country.
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