New Delhi: The Reserve Bank of India has established an independent unit for research on Cryptocurrency, Blockchain and Artificial Intelligence. This particular unit is reportedly responsible not only for keeping an eye on the new emerging technologies of Cryptocurrency and Blockchain but also for drafting rules and regulations regarding the same.
RBI has issued a ban on cryptocurrencies. As per the strict guidelines of RBI, the Indian banking systems have completely stopped all transactions and services related to cryptocurrencies from the month of April. Previously, the central government had also frequently warned investors against making investments in cryptocurrency.
Cryptocurrency is a kind of ‘Ponzi scheme’, and the government had expressed the fear that investors may lose their hard-earned money by investing in it. The Income Tax department had also raided the cryptocurrency exchange in India.
Against this backdrop, the formation of this particular unit by RBI indeed commands attention. RBI has not yet officially announced about the unit, even though it was allegedly set up about a month ago.
A petition has been filed against the RBI in the court to challenge the ban on cryptocurrency. Although the decision is still pending, the Supreme Court had refused to adjourn the RBI decision.