RBI has installed a new unit a month ago which is expected to boost up the capital functionality through the use of the latest and emerging technologies like blockchain and AI. Read the article to get better insights into the same.
A new unit has been formed by the Reserve Bank of India (RBI) which is within the central bank. The objective of the unit is to amplify the intellectual capital in the direction of the emerging technologies like cryptocurrency, blockchain and artificial intelligence. The unit is expected to perform the research work and then frame the rules to monitor these technologies in the future.
Two people have come up who are familiar with the plans that the central bank is having for the same. One of them has said,
“As a regulator, the keen role of RBI is to explore the new emerging technologies and areas. RBI need to analyse what are the technologies that must be adopted and could be used to revise the current structure into an advanced one. This new unit is on an experimental basis and will evolve as the time will pass.”
The unit was established about a month ago. Though any formal announcement has not been made yet by RBI it is rumoured that a Chief General Manager is leading the unit. Analysts are appreciating this step taken by RBI and said that this is the right thing to do especially when new technologies have the potential to modify and pace up the business models.
Following is the comment released by the analysts,
“This is true especially when we talk of the financial world were paper-based regulations have passed due to the onset of digital technologies. It is extremely important and commendable thing to do from RBI’s perspective.”
RBI has released a number of warnings related to trading in cryptocurrencies and this has been the major reason for the formation of this unit. When Bitcoin hit its peak in December 2017, even then RBI was busy in issuing warnings to the users, holders and traders of virtual currencies regarding the risks associated with operational, customer protection, financial, legal and security issues.
Thus all these ideas resulted in the formation of the unit. The ultimate idea is to utilise the data, analytics and real-time information for the enforcement of new technologies and introduce their benefits into the functionality. And to explore this with more efficiency another unit based on data sciences is also likely to start in December 2018.
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