[2018-08-27] India’s Central Bank Forms New Crypto, Blockchain Research Unit

[moriskarlov]

The Reserve Bank of India (RBI) has reportedly established a new internal unit dedicated to researching and regulating new emerging technologies, specifically cryptocurrency, blockchain and artificial intelligence (AI).

Holding back on a formal announcement, the RBI has discreetly formed a new unit to research and possibly supervise disruptive technologies through draft rules in the future, the Economic Times reported on Monday.

The unit has been operational for a month and already sees an as-of-yet unnamed general manager leading it, according to the report citing two sources aware of developments at the central bank.

One of the sources reported added:

“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 development comes at a time when the central bank – after years of public caution against trading cryptocurrencies like bitcoin – said it was necessary to regulate the sector during a Supreme Court hearing in July this year.

Earlier in April, the RBI issued a circular to all regulated financial institutions – including banks – to forbid them from transacting or providing services to companies associated with cryptocurrencies. The effect of the mandate has had a crippling effect on domestic cryptocurrency trading and has seen crypto exchanges oppose the banking ban that is now a matter being contested at the Supreme Court.

Senior government officials – not directly associated with the central bank – who are part of a panel discussing regulations for the sector have ruled out a complete ban, insisting that cryptocurrencies are likely to be classified as commodities.

See more - https://www.ccn.com/indias-central-bank-quietly-forms-new-cryptocurrency-blockchain-research-unit/

[aso118]

The central bank does not have to put too much effort into researching emerging technologies, if all they are going to do is block them. By cutting off banking links to crypto exchanges, the RBI has pretty much managed to shut them down.

[Rustamm]

Recently there was information that the commission, established by the Government of India, came to the conclusion that bitcoin and other crypto currency can be recognized as a means of payment. If this issue is again handled by the Reserve Bank of India, this will not happen. At the same time, this bank saw great support for the country's crypto currency, and therefore there will not be a complete ban, as planned earlier. Apparently, indeed, the crypto currency in India can soon be recognized as a commodity. In any case, this is much better than the attitude of the authorities in this country to the crypto currency earlier.

[Harlot]

Is this some kind of good news or just a diversion to cover up what they are really doing to their own cryptocurrency market. I really don't want to judge not until I see the actual results of their work. This central bank has been known for their ridiculous memorandums and use of abusive power and I doubt this internal department they are talking about will do such thing to improve the status of cryptpcurrencies in their country. Also the SC decision is still yet to be concluded this I think is a much more important news comlared to tge new department.

[AltEvangelist]

By cutting off banking links to crypto exchanges, the RBI has pretty much managed to shut them down.

It was a really bad blow to crypto exchanges. They are managing somehow with P2P transactions. But volumes are no more like they were before the ban. The ban managed to almost entirely stop crypto-fiat trades.
Frankly, the news above doesn't give any hope or expectation considering how much uncertainty and confusion has already been created so far.

[timerland]

It wouldn't make sense for them to have restrictions when it comes to banks dealing with crypto related entities and services, while conducting research on crypto and even launching an entirely new research group just for this purpose.

Perhaps this is the real signal that in future, the restrictions could potentially be lifted.

Still too early to tell, but I certainly hope that this is the case. Hopefully actual research is being done into the benefits and merits of bitcoin, instead of the usual biased approach. And with the new regulations, let's hope that the taxation levels aren't as absurd as the are rumored to be, with a potential GST tax blanketing all trades.

[Kemarit]

Is this some kind of good news or just a diversion to cover up what they are really doing to their own cryptocurrency market. I really don't want to judge not until I see the actual results of their work. This central bank has been known for their ridiculous memorandums and use of abusive power and I doubt this internal department they are talking about will do such thing to improve the status of cryptpcurrencies in their country. Also the SC decision is still yet to be concluded this I think is a much more important news comlared to tge new department.

We all know that their government received a lot of back lash from its pro-crypto citizens. Specially when India's Central Bank upholds RBI's circular about banning crypto-fiat transactions. Even RBI themselves admitted they make a hasty decision.

https://news.bitcoin.com/reserve-bank-of-india-admits-issuing-crypto-ban-without-research/

So probably a good sign that India Supreme Court and RBI might soften their stance on crypto and could potential lift their bans after carefully looking at all the parameters.

[monocolor]

Sounds like the Indian central bank will like to create a cryptocurrency of their own, that may replace their own currency. Will be interesting to see.

[rodskee]

Good news surely this a big help for the people of india and for the whole country of india
I think central bank of India create a blockchain team unit because they looking another source of improvement of the new technology of currency's.

[gentlemand]

Sounds like the Indian central bank will like to create a cryptocurrency of their own, that may replace their own currency. Will be interesting to see.

Considering what the Indian government was willing to do to their population with good old cash - https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetisation

That would be an extremely ominous sign for Indian people. It would be a disgusting enough move in an electronic banking heavy society, it's outright war on the poor somewhere like India.

[veleten]

Sounds like the Indian central bank will like to create a cryptocurrency of their own, that may replace their own currency. Will be interesting to see.

they would have to make sure they decide the status of cryptocurrencies first
it seems that they haven't made their decision as to whever ban it or make it  the cash replacement,suddenly
I don't think the polar options like that is a sign of a mature goverment that knows what is it doing at all

[maarx]

Had to go through the same news under https://www.coindesk.com/india-eyes-state-digital-currency-to-cut-90-million-banknote-bill/

Spending $90 million for printing notes is really pathetic. Still looking at the recent news on forming unit to think of a new digital currency which would reduce the amount in printing the notes. The move is really appreciated. Expecting a good and quick move on crypto currencies.