Sitharaman’s comments on the use of blockchain technology by Indian banks
The government has informed parliament that there is no proposal for a common blockchain-based platform for Indian banks.
“There is no proposal to set guidelines or prescribe a model common blockchain technology platform for banks,” Finance Minister Nirmala Sitharaman said in a written response to Rajya Sabha.
Sitharaman also reported to parliament on the use of blockchain by Indian banks.
She told the Senate that only a handful of banks are using blockchain technology on a small scale. As a result, interoperability is not a big issue among banks, she added.
For those unfamiliar with the term “interoperability”, “interoperability” is a key concept in blockchain technology and refers to the ability of one blockchain to interact with other blockchains.
Sitharaman told Rajya Sabha that a consortium of banks is currently exploring the possibility of issuing domestic letters of credit (LC) using distributed ledger technology (DLT) (blockchain is a distributed ledger). Told.
The consortium — Bank of India Blockchain Infrastructure Company (IBBIC) Private Limited — comprises 18 leading public and private sector banks in India.
She said the consortium was put together to provide a platform for researching, building and implementing distributed ledger technology solutions for the financial services sector.
The use of blockchain technology for banking in India is still in its infancy, but the Reserve Bank of India has been talking about it for some time.
In fact, through their “regulatory sandboxes,” central banks provide a platform for testing innovative technologies, products and services such as blockchain.
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