In a bet to stay on track regarding evolving technologies such as cryptocurrency, blockchain and Artificial Intelligence (AI); RBI is introducing a new unit formation.
According to reports, unit members are liable to conduct research, draft rules, with supervising the development of cryptocurrency, the blockchain, and artificial intelligence applications.
This is an obvious attempt for enhancing their capacity in the field. RBI has gathered experts from respective fields in a new unit formation. The RBI’s new unit is not only assigning to research the developing technologies but also to stay prepared with rules for future supervision.
One source cites in the article commenting:
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.
The formal announcement on the unit is still waiting. However, a Chief General Manager has been detected to lead the unit. The unit seems to be just about one month old. No formal announcement about the new team has been heard yet. RBI is still not responding to media queries regarding additional details.
The report also mentions another expert on the topic, Piyush Singh, the MD of financial services at Asia Pacific & Africa at Accenture. He says that until regulators are a part of the ecosystem, they apprehend and boast a clear indication about the acceptance measure. They can neither secure industry regulation nor the consumers who are using it. Singh believes that RBI is on the right track while thinking about new technologies, as they are shaping business models.
The source also adds,
This is true especially in the financial world where paper-based regulations are a passe’ due to the onset of digital technologies. It is extremely important and the right thing to do from RBI’s perspective.
This news about RBI’s formation of the research unit follows multiple warnings against cryptocurrency transaction engagement issued by the central bank of India. Back in December 2017, RBI mentioned a majority of cryptocurrency risks on the financial, economic, and legal character.
Additionally, in 2018, the bank issued all financial institution regulators to cease services for businesses relating to cryptocurrency. In the meantime, Indian official authorities have been working on a framework regulation for the cryptocurrency industry.
Previous statements states that the draft regulations to be all set in July. This later follows another estimation saying the Indian government is currently expecting the issuance of cryptocurrency guideline details by September. However, consultations with stakeholders are still underway.
By April, the RBI is also setting up a plan to arrange data sciences laboratory along with experts. The experts will be from the fields of computer science, data analytics, econometrics, economics, statistics, and finance background.
However, the social media response till the moment was fairly positive. Let’s see an instance:
RBI now has a blockchain unit! I hope they get more insights and understand how crypto is the future and there's no way to stop it. Revolutionary technologies that do good for the world cannot be buried. You can only adopt and adapt #isupportcrypto https://t.co/NHOuLZ9bNH
— Nischal (WazirX) ⚡️ (@NischalShetty) August 27, 2018
Image Source: RBI