The Reserve Bank of India (RBI) has formed a new unit within the central bank to beef up its own intellectual capital in the face of emerging technologies like cryptocurrency, blockchain and artificial intelligence.
This new unit will research and possibly draft rules and supervise new emerging technologies in the future, two people familiar with the central bank’s plans said. “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,” said one of the people cited above.
RBI has formed this new unit even as it has more than once issued a warning on trading in cryptocurrencies.
In December 2017 even as Bitcoins hit a record high, RBI warned users, holders and traders of virtual currencies, including Bitcoins regarding the potential “economic, financial, operational, legal, customer protection and security-related risks associated in dealing with virtual currencies”. The idea is to use data, analytics and real time information for different RBI functions like inflation targeting, banking regulations and policy enforcement. This unit on data sciences is likely to start in December 2018.