Indian Central Bank has dismissed the ‘formal creation’ of blockchain and AI research units.
The explanation after an investigation comes weeks after the Reserve Bank of India was rumored to have set up the supposed unit to “research and possibly draft rules” for the upcoming technologies.
In an article on the unit’s formal creation, the Economic Times has referred two anonymous sources who are familiar with the RBI’s plans.
Although, founder of Coin Crunch India, Mr. Naimish Sanghvi, filed an RTI (Right to Information) request hoping to verify the article’s claim and gain more information about the department, like ho was heading the unit, and so on.
Mr. Naimish Sanghvi, got the response on 26th September, denying the claimed effort.
The RBI stated:
“There is no new unit formally created in RBI for the purpose (Blockchain, Crypto and AI) mentioned in RTI query.”
So, the RBI has formed a unit ‘study and provide guidance’ on the desirability and feasibility to start a central bank cryptocurrency it appears its position on digital cryptocurrency use more generally has not softened.
In April, the RBI issued a circular ordering bank to halt services to digital currency businesses, a move that shook the local cryptocurrency industry and has even caused exchange businesses to cease trading. With fiat withdrawals and deposits impossible as a result, exchanges have moved to survive on crypto-to-crypto trading, but volumes have suffered.
In response to the embargo, varies entities, including, exchanges, have filed numerous counter-petitions with the Supreme Court in what has become a combined case. The last hearing saw the case postponed, although it is expected to resume soon.