Business Standard, India’s Union Cabinet, an executive decision-making body composed of senior government officials and led by Prime Minister Narendra Modi announced that they approve a joint research on distributed ledger and blockchain technology by nation’s Export-Import Bank (Exim Bank) with partner banks in the BRICS economic bloc alongside Russia, Brazil, China, and South Africa to conduct . An official statement stated:
“(The Cabinet gave its) …ex post facto approval for the Memorandum of Understanding (MoU) on collaborative research on distributed ledger and blockchain technology in the context of development of digital economy by Exim Bank,” The statement further added “Distributed ledger/blockchain technology holds potential for solutions to various challenges faced in the financial sector by BRICS nations.”
A Blockchain is a digitized, decentralized ledger to record real-time transactions across borders. Whereas a distributed ledger is a database held and updated independently by each participant in a large network across multiple sites, institutions or geographies.
According to the release, the research has already begun and is being conducted with the China Development Bank, the Banco Nacional de Desenvolvimento Economico e Social from Brazil, the Development Bank of South Africa, and Vnesheconombank from Russia.
A report in Financial Express quotes the release:
“The MoU intends to enhance understanding of Distributed Ledger/Block Chain technology, through the joint research efforts to identify areas within respective business operations where it may have the potential for applications aimed at enhancing the operational efficiencies.”
According to the report, this move will further enable India’s goal of developing as a digital economy. Though the Central Bank of India continues its strong aversion to cryptocurrency, their annual report that was released a few days back reveals that an RBI panel plans to explore the feasibility of a Rupee-Backed Digital Currency.