The Reserve Bank of India (RBI) is developing a blockchain based banking platform to facilitate banking processes. RBI’s research and development branch have undertaken the move. The new platform will cater to banking needs and will host various blockchain applications. The launch will take place sometime in 2020.

The blockchain platform will apparently meet the needs of the government in the banking arena as the director of IDRBT, AS Ramasastry said. In spite of the fact that he acknowledged blockchain applications’ potential benefits in a variety of areas he also suggested to stay cautious. The IDRBT Director also admired how fintech companies are developing and reshaping financial services.

With regard to banking technology in the future, Ramasastry was quite positive as digital transactions like UPI has drastically developed in a short period of time. He also informed about 5G case labs being set up for banking and financial services.

Despite RBI’s newfound interest in blockchain, it has so far not been too positive about an allied form of technology: cryptocurrencies. This is due to the security issues, uncertainty and multiple scams associated with it. Recently, Indian crypto exchange Koinex shut down due to stringent regulations. Also, the infamous Facebook Libra has no plans to launch in India.

RBI’s interest in blockchain tech seems to be quite poignant. It can have a great implication as far as the populace’s blockchain literacy is concerned.