Legal

RBI – India’s Central Bank Denied The Formation of Blockchain Unit.

According to a recent official report, this clarification was revealed after an investigation by Coin Crunch India when a rumour was reported that the RBI has setup the supposed unit to research and presumably draft rules for the new rising technologies.

In line with the article on the unit’s supposed creation, the local news report by ‘Economic Times’ had cited two unknown sources who were familiar with the RBI’s plans.

However, Naimish Sanghvi, founding father of Coin Crunch, filed an Right To information [RTI] requesting to verify the article’s claim and gain additional info concerning the department, like who was heading the unit, and so on.

Naimish received a response on 26th September, denying the claimed reporting.

Adding further RBI mentioned:

“There isn’t any new unit created formally in tally for the aim (Blockchain, Crypto and AI) mentioned in RTI query”.

However, It was believed that RBI has formed a new unit to study and supply steering on the desirability and practicability to introduce a central digital currency, ratherly for now it appears its stance on crypto to use formally has not still being softened.

In a move that shocked the native crypto trade and has even caused exchange businesses to stop commercialism, the RBI revealed a circular ordering banks to completely ban services to cryptocurrency businesses till the month of Apr. by this year. With fiat currency withdrawals and deposits not possible as a result, exchanges have shifted to survive on crypto-to-crypto commercialism thereby seriously affecting the daily trade volumes.

In response to the ban, several entities, including, exchanges, have filed many counter petitions with the Supreme Court in India in what has become a combined case.

In the last hearing, the Supreme Court postponed the filed case, though it’s expected to resume very soon.

RBI’s Response denying the claimed report can be seen here.

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