Reserve Bank of India appreciates the blockchain tech

Blockchain | December 28, 2015 By:

The Reserve Bank of India published an article acknowledging the potential of the blockchain, including protection against counterfeiting.

“With its potential to fight counterfeiting, the ‘blockchain’ is likely to bring about a major transformation in the functioning of financial markets, collateral identification (land records for instance) and payments system,” said the RBI.

The central bank pointed out that the traditional system of record maintenance works on the basis of ‘trust’ and the ‘regulatory’ and ‘controlling’ power of central entities/counter parties. “As against this, the ‘blockchain’ technology is based on a shared, secured and public ledger system, which is not controlled by any single (‘central’) user and is maintained collectively by all the participants in the system based on a set of generally agreed and strictly applied rules,” the RBI said.

The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee.