RBI Forms a New Unit to Track The Blockchain and AI
August 27, 2018 4:07 pm
According to the reports, a team has been formed by the Reserve Bank of India (RBI) to make its intellectual capital strong and effective. The initiative is taken by the bank to strengthen the emerging technologies such as blockchain, digital currencies and artificial intelligence (AI).
Employees from RBI revealed that the newly formed unit would draft rules and supervise these emerging technologies. One of the employees said, As a regulator, RBI is exploring new emerging fields to check what needs to be adopted.
The Chief General Manager seems to be leading the newly formed unit. No formal announcements have been made yet. Analysts have shared their thoughts about the new initiative. They stated that RBI is adopting new technologies to change the existing business model.
Mr. Piyush Singh, Managing Director-Financial Services, Accenture (the Asia Pacific and Africa) also spoke regarding the unit formed by RBI. Mr. Singh stated that unless the regulators take part in the ecosystem, they know what needs to be accepted. The RBI cannot protect the industry it regulates or the customers who use it.
According to Mr. Singh, in the financial world, paper-based regulations are passed because of the onset of digital technologies. It is an important thing to be done by RBI. RBI has formed this new unit even though it has issued warnings on trading cryptocurrencies such as Bitcoin.
Mr. Singh included:
“These ideas have all taken fruit after governor [Urjit] Patel took charge two years ago. Another similar idea is the setting up of a new data sciences laboratory, which was announced in the April monetary policy.”
The idea of the unit is to use the data, analytics, real-time information for different RBI functions such as inflation targeting, banking regulations, and policy enforcement. The initiative is going to be started in December 2018. Notably, in April 2018, RBI stopped banks from dealing in virtual currencies.