India Approves Blockchain Research By BRICS Member Banks

Blockchain, News | September 13, 2018 By:

India’s Union Cabinet, the supreme decision-making body in the country led Prime Minister Narendra Modi, has approved a memorandum of understanding (MoU) on a joint research on distributed ledger and blockchain technology.

Earlier this week, the decision-making body announced that it would allow the Export-Import Bank of India (Exim Bank) and banks from other BRICS member states – Brazil, Russia, China and South Africa – to conduct a blockchain research in order to develop a digital economy.

The joint research, which was initially proposed during the 10th BRICS summit in Johannesburg, South Africa in July, will aim to identify areas within respective business operations where blockchain may have the potential for applications. According to the release, the research has already begun and is being conducted with Russian development bank Vnesheconombank, the Brazilian Development Bank, the China Development Bank and the Development Bank of Southern Africa.

During the summit, Mikhail Poluboyarinov, First Deputy Chairman and a Member of the Board at Vnesheconombank, said that the Russian bank was already working with banks from each BRICS member state in a range of key areas, including financial cooperation, developing credit financing in national currencies and implementation of innovations.

“This joint work opens new opportunities for Russian exporters, operators of large industrial projects, recipients of investments,” said Poluboyarinov. “The current agreement allows the development banks of BRICS countries to study the applications of innovative technologies in infrastructure finance and bank products optimization.”