India’s Top Bank Clarifies On Creation Special Blockchain Unit
The country has a harsh cryptocurrency environment that has forced many firms out of business. The RBI is currently battling lawsuits over punitive policies.
RBI Denies Creating Blockchain Unit
The Reserve Bank of India has addressed reports claiming that it has officially set up a special branch tasked with exploring the blockchain and AI technology. However, RBI has dismissed the reports as false.
Recently, emerged from India indicating that the branch was established to explore opportunities while at the same come up with regulations for the industry. The reports further pointed out that the current financial system laws cannot fully cater to emerging technologies hence new regulations are required.
Functions of Alleged Blockchain Unit
The RBI was forced to distance itself from the report after a probe by Coin Crunch India. The reports were published by the Economic Times. The paper pointed out that it had two reliable contacts from the bank.
Coin Crunch boss Naimish Sanghvi reacted to the article by filing a Right To Information Request. Through the query he sought to determine the truth in the article’s contents. He wanted to know the unit’s boss and the official mandate. The RBI provided an official response last where it categorically denied the existence of such a unit.
In case the bank has established the section it indicates that India’s hard stand on cryptos has not changed. The unit’s mandate will be to offer direction on the viability to launch an RBI digital coin.
India Shocks Crypto World With Punitive Policies
Recently, the Indian government shocked many after passing a punitive policy on cryptocurrencies. The policies have even forced a number of the crypto trading platforms to close shop due to the harsh working environment. The policy required banks to stop dealing with crypto ventures. It means that withdrawing and depositing fiat will no longer be possible. The decision has affected trading since volumes have negatively been impacted.
A number of exchanges have vowed to stay put and manoeuvre around and seek fresh survival means. Others have resorted to moving to court with countersuits under the country’s Supreme Court.
The hearing for the suits has already begun. The last sitting was pushed forward.