Central bankers everywhere are looking wide-eyed at the underlying technology that powers the cryptocurrency Bitcoin. Now with the economic uncertainty brought on by the reality of Brexit, the Reserve Bank of India is preparing by studying blockchain technology and stashing forex reserves.
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Reserve Bank of India Notes Blockchain ‘Flexibility’
The Reserve Bank of India (RBI) is India’s central banking institution, which disperses its sovereign currency (the Indian rupee) and oversees its monetary policy. According to The Times of India, the central bank is continuing its research with distributed ledger technology since it last discussed the subject back in December of 2015.
Now Deputy Governor H.R. Khan said on June 24 that RBI will be setting up a special committee that explores the use of blockchain protocol in order to reduce dependency on paper currency.
Khan spoke to an audience about the matter at a conference held at the Institute for Development and Research in Banking Technology (IDRBT). He told the press at the event: