The Reserve Bank of India (RBI) is forming a special unit to follow evolving technologies including Cryptocurrency, Blockchain and AI.

According to reports, unit members will be responsible for conducting research, drafting legislation, and supervising developments in cryptocurrency, blockchain, and artificial intelligence applications.

This attempt marks an effort for the RBI to acquire enhanced control over budding industries.

One source cites:

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 pending. However, a Chief General Manager has been suspected to lead the unit. 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. Singh believes that RBI is on the right track while thinking about new technologies, as they are shaping business models more responsibly.

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.

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