Indian Cabinet approves Exim Bank’s joint research with BRICS nations on blockchain
In an interesting development India took a step forward in trying to understand the need of distributed ledger technology (DLT) or more commonly called as blockchain in context of the development of digital economy.
The Union Cabinet on Wednesday approved a joint research on the distributed ledger and blockchain technology by Export-Import Bank of India (Exim Bank) with member-banks of Brazil, Russia, India, China and South Africa (BRICS).
Exim Bank, which promotes India's international trade through competitive financing, will participate with member-banks under BRICS Interbank Cooperation Mechanism, a Finance Ministry statement said.
The ex-post facto approval for the Memorandum of Understanding (MoU) was given by the Cabinet chaired Prime Minister Narendra Modi.
The nature of blockchain technology has got imaginations running wild, because the idea can now be applied to any need for a trustworthy record. Distributed Ledger Technology or blockchain technology offers a plethora of solutions to various challenges being faced in the financial space of the BRICS nations.
An attempt to understand blockchain use cases
Blockchain is a digitised, decentralised ledger which gives you the freedom to record real-time transactions across borders. Distributed ledger is a database held and updated independently by each participant in a large network across multiple sites, institutions or geographies.
"The MoU intends to enhance understanding of Distributed Ledger/Blockchain technology, through the joint research efforts to identify areas within respective business operations where it may have the potential for applications aimed at enhancing the operational efficiencies," the release said.
The Xiamen Declaration signed in China on digital economy by the BRICS leaders had highlighted the importance of the digital economy and how the nations could leverage the thriving and dynamic digital economy that will foster global economic development and benefit everyone.
While this latest development regarding blockchain is a welcome move by the Indian government, the fate India’s cryptocurrency ecosystem has long been on tenterhooks and the final say on the fate of cryptocurrencies in India is still to be heard.
As reported earlier, the clash between the Reserve Bank of India (RBI) and crypto exchanges started when the central bank restricted banks from offering services to companies dealing with cryptocurrencies. According to its directive, banks and financial institutions were required to terminate all professional relations with such exchanges in India.
The ensuing legal battle between the Reserve Bank of India (RBI) and the cryptocurrency bourses is approaching its logical conclusion and there is a sense of anticipation among the crypto community.
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