India’s Banking Research Institute to Implement Blockchain
January 23, 2019 11:40 am
The Institute for Development and Research in Banking Technology (IDRBT) of India recently published a blueprint on Blockchain implementation in the banking sector, the Financial Express, Indian daily newspaper reported on Tuesday, January 22.
The Reserve Bank of India (RBI) established IDRBT in 1996 with the purpose of conducting research and experiments in the banking sector. The organization currently partners with the Indian government, banks, and industry contenders to develop an interoperable blockchain platform.
There is no proper regulation for the blockchain space in India, yet. But the blueprint proposes a road map on the technology’s adoption in different areas and projects, to create protocols that would conduce interaction between financial institutions through decentralized platforms.
R Gandhi who is the former RBI Deputy Governor said that the banking and financial sector is susceptible to cybersecurity risks because of “increased use of rapidly evolving, sophisticated, and complex technologies… increased use of mobile technologies by customers, including rapid growth of the Internet of Things (IoT) and the heightened cross-border information security threats.”
According to the Business Standard, the road map also specifies a pre-installed mechanism for regulatory supervision of the blockchain ecosystem. The IDRBT claims that this will contribute to the ubiquity of the technology.
So far, the Indian Government has expressed ambivalent sentiments towards technologies associated with crypto. Whereas, the RBI formally terminated all the cryptocurrency related services from all the banks in India, with the government panel reportedly considering an official ban. However, the RBI did reveal its plans to introduce a rupee-pegged digital currency.
In January, the RBI reportedly abandoned its digital currency plans, due to the unsatisfactory result of a study conducted on stablecoins by an interdepartmental group. Also, later in the month, the state police of Jammu and Kashmir issued a statement to warn people about the potential risks regarding crypto investments, which served as a reminder of the lack of regulations of digital currencies by the government.