Reserve Bank of India (RBI) has announced that they are developing a blockchain platform. This platform can be used by multiple banks at once to provi
Reserve Bank of India (RBI) has announced that they are developing a blockchain platform. This platform can be used by multiple banks at once to provide their services. RBI is the centralized government bank of India handling major decisions and producing cash. The Institute for Development and Research in Banking Technology (IDRBT) was established by RBI to act as their research arm.
IDBRT is the best research institute in India and the scientists have already been studying the blockchain technology in the past two years. Considering the recent events in India such as demonetization, mandatory aadhar/UID (unique ID) registration, etc. the researchers believe that this is an ideal time for the platform to be launched.
The government is actively supporting digitalization of India and removal of corruption. The researchers believe that blockchain technology has been matured enough for it to efficiently digitalize the Rupee, which is India’s national currency. Digitalizing the currency can be immensely helpful against crimes such as bribery, money laundering, tax fraud, etc.
As per Hindu Business Line, along with RBI and IDRBT, many other Fintech players will also be working together to create the platform. The blockchain platform will focus on using the technology to help customers reach commercial services.
The director of IDRBT, A S Ramasastri has said that they will very soon be launching the platform. According to report, IDBRT filed to get 3 patents in cloud computing, cyber security solutions and programming protocols and which may relate to the platform. The IDRBT has already finalized a list of applications which may be added to the blockchain platform.
On the other hand, State Bank of India (SBI) which is the largest Indian bank took the first step towards financial consortium using blockchain technology previous year. ‘BankChain’ working group brings a completely new concept of banking to India and considers the largest public and private banks as technology partners and participants. In June, the consortium finished its first project which enabled members to share anti money laundering (AML), know your customer (KYC), and countering terrorism financing (CTF) credentials through blockchain.