According to the Economic Times, the RBI has secretly established a new research unit that will look into regulating and fostering the development of emerging technologies such as cryptocurrency and blockchain.
Even though an official announcement has not yet been made by the Indian government in relation to this latest development, various local media outlets have confirmed the aforementioned reports and have even gone as far to say that the new government body will help supervise the growth of emerging technologies so that they can be incorporated into the nation’s financial and social framework.
More on the Matter
While the unnamed body has already been active for over a month, there are no clues as to who is currently presiding over the agency’s day-to-day operations.
According to the Economic Times news report, two sources closely linked with this project have mentioned that with this latest effort, the RBI is looking to ”explore new emerging technological domains to check what can be adopted and what cannot.”
He then went on to add that:
“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.”
What is even more surprising is that this latest development comes after the RBI has repeatedly spoken out against Bitcoin and various other altcoins, deeming them to be speculative investment tools that are ‘bound to cause investors a lot of misery’.
Not only that, the Indian financial institution also issued a circular earlier this year which effectively put a ban on all cryptocurrency trade within the country.
The Indian Population Remains Bullish on Crypto
Even though the RBI forced the nation’s regulated financial entities to forbid crypto-fiat transactions from taking place earlier this year, many of the country’s digital asset traders and investors took to the streets to contest the RBI’s seemingly “unlawful decision”.
It is also worth noting that many high-profile government officials who choose to remain unnamed, noted that the ban was more of a temporary measure so that the government could get a better understanding of cryptocurrencies and their economic potential. They then went on to add that it is most likely that crypto assets will be classified as ‘commodities’ in the near future.
This move by the Indian regime brings the country a step towards realizing the true power of altcoins and their underlying blockchain technology. Additionally, it was also reported some time back that the Reserve Bank of India is currently in the process of developing its native blockchain system so as to streamline its governance protocols.
It now remains to be seen how things pan out for the crypto sector within the S.E Asian powerhouse in the months to come.