RBI Denies Creation of a Unit focused on Blockchain and Cryptocurrencies

The Reserve Bank of India, also known by its acronym (RBI) has denied the “formal creation” of a unit to investigate artificial intelligence and blockchain technology.

RBI Logo

The announcement was made on Wednesday, after rumors spread about an alleged initiative to investigate and draft rules regulating the use and development of cryptos, blockchain technologies, and Artificial Intelligence applications.

Faced with this confusion, Naimish Sanghvi, founder of Coin Crunch India, submitted an RTI (Right to Information) application in the hope of confirming the rumors and obtaining more information in case they were real.

It is worth remembering that, under this law, any citizen of India can request information from a public authority, which must respond expeditiously or within thirty days.

RBI: Letting Blockchain and Cryptos Alone

According to Mr. Naimish Sanghvi, the RBI was blunt in denying such an initiative, eliminating any suspicions in this regard:

The Reserve bank in its reply to the RTI query said, “There is no new unit created formally in RBI for the purpose (Blockchain, Crypto and AI) mentioned in RTI query.”

It is important to note that the Reserve Bank of India is part of a committee headed by Subhash Chandra Garg, the secretary of the Department of Economic Affairs, who was tasked with presenting a report on the regulations surrounding cryptocurrency use.

India: A Love/Hate Relationship With Cryptos?

Also noticeable is that not only the Central Bank but the Indian government expressed a strong anti-crypto stance; however, there are reports that the state would have been evaluating the possibility of issuing its own Central Bank Digital Currency as a way to strengthen its economy.

As a part of national policies, the Indian government prohibited the offering of any type of services related to the use of cryptocurrencies. This led several exchanges to raise their voice against this decision, including taking their fight to the legal terrain.

So far there are no reports of a change of position on the part of the government; however, the market of cryptocurrencies in India continues to consolidate over time as one of the most important in the region.

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