Central Bank of India creates unit to deal with Blockchain regulation

India's central bank have formed a new unit dedicated to researching regulatory structures for Blockchain, cryptocurrencies and other technologies, sources familiar with the matter indicate.

The Reserve Bank of India (RBI) has launched this new unit about a month ago to "investigate and possibly draft rules" for emerging technologies.

"As a regulator, the RBI also has to explore new emerging areas to see what can be adopted and what can not ... This new unit is experimental and will evolve over time," said one of the sources cited by the Economic Times.

While the RBI did not officially announce the unit, the news follows a central bank report detailing its Blockchain-related rehearsals, which suggested the creation of a regulatory framework for Blockchain.

It should be noted that the Institute for Development and Research in Banking Technology (IDRBT), founded in the 1990s by the RBI, is developing a Blockchain platform prototype.

The IDRBT will have already tested a proof of concept for settlement of trade financial transactions through a distributed multi-stakeholder network, including banks and payment providers.