RBI Deputy Governor Asks Banks to Gear for Blockchain Future as India Awaits Crypto Rules

The up-and-coming blockchain technology is the underlying system that supports cryptocurrencies, NFTs, and the overall Web3 sector.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 2 June 2023 09:47 IST

RBI Deputy Governor Asks Banks to Gear for Blockchain Future as India Awaits Crypto Rules

Photo Credit: Twitter/ Digital Rupee CBDC

India is still awaiting its rules to govern the crypto sector

Highlights

AI and blockchain are being explored for use cases around the world
RBI deputy governor has emphasised Indian banks should adopt this too
India aims to take a pro-digital approach to revamp its economy

Mahesh Kumar Jain, the Deputy Governor of the Reserve Bank of India (RBI), has predicted that technologies like blockchain and Artificial Intelligence (AI) would be part of the future of finance. The RBI recently met with the directors of Indian banks. The aim of this meeting was to address concerns and risk mitigation measures that India must be ready for in the future. The up-and-coming blockchain technology is the underlying system that supports cryptocurrencies, NFTs, and the overall Web3 sector.

Linking AI and blockchain to existing financial systems, the RBI official said, is essential to ensure the growth and stability of India's digital finance sector.

“Indian banks will need to focus on digital transformation, enhance customer experience, adopt innovative technologies such as AI and blockchain, invest in cybersecurity measures, look for opportunities to derive synergistic benefits through collaboration with other players as well as upskilling their workforce to meet the demands of the digital era,” Jain said in the meeting.

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The development comes just days after a Coindesk report claimed that Indian crypto exchanges were in “survival mode” right now. Citing sources from CoinDCX, CoinSwitch, WazirX, BuyUCoin, ZebPay, and Giottus, the report claimed Indian exchanges see their runways ranging from 21 months to four years before they land into a bull market.

Speaking to Gadgets 360, Unocoin CEO Sathvik Vishwakarma agreed that the next four years are indeed crucial for India's crypto ecosystem and highlighted that progressing with tech is crucial for the nation to be ready for the hyper-competitive future.

“Regulatory environment, institutional adoption, tech advancement, market volatility, and investor sentiment are among several major factors that will shape the future of national as well as international fintech sector,” Vishwakarma said.

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The Unocoin chief listed patchy policies, hack attacks on Web3 platforms, and resistance from traditional finance as factors that may delay the projected four-year trajectory, which may vary depending on the perspectives of industry insiders.

India's CoinDCX exchange also emphasised that it is prioritising tech development in order to keep its services up to date and relevant for the users.

“CoinDCX is using the bear market as an opportunity to build and enhance its technology. We are investing heavily in strengthening our capabilities and infrastructure to pave the way for the mass adoption of Web3,” the company told Gadgets 360.

For now, the RBI governor has asked banks to prioritise risk management, regulatory compliance, and sustainability solutions to ensure long-term resilience in the banking ecosystem.

Samsung Galaxy A34 5G was recently launched by the company in India alongside the more expensive Galaxy A54 5G smartphone. How does this phone fare against the Nothing Phone 1 and the iQoo Neo 7? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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Further reading: Cryptocurrency, RBI, India, Blockchain, Crypto

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More