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As blockchain technology gets attention from global governments, India is taking steps to understand how to use the distributed ledger to its advantage. The Indian government has given the country’s Export-Import Bank (Exim Bank) the go-ahead to research how blockchain and distributed ledger technologies could propel the economy as the country braces itself for a digital future.
This approval cements the Exim Bank’s blockchain research efforts, which, according to the Business Standard, has already signed a Memorandum of Understanding under the BRICS Interbank Cooperation Mechanism. The BRICS (Brazil, Russia, India, China, and South Africa) would join the Exim Bank in a collaborative research initiative towards blockchain and distributed ledger technologies. BRICS member banks that are part of this joint project include Banco National de Desenvolvimento Economico e Social of Brazil, State Corporation Bank for Development and Foreign Economic Affairs of Russia, China Development Bank, and the Development Bank of South Africa.
According to an official statement:
“(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 the development of digital economy by Exim Bank.”
The approval came from the Union Cabinet of India, a high-level, decision-making arm of the country. The cabinet is made up of high-ranking government officials led by Narendra Modi, Prime Minister of India. This blockchain research effort will add to Narendra Modi’s dream of increasing India’s access to digital technology through the Digital India Initiative launched in 2015 by the Prime Minister.
As a disruptive technology that will change the internet and money as we know it, this is a move in the right direction and would hopefully help create a better Digital India Initiative, Decentralized Digital India, where ownership of data and digital assets is in the hands of the citizens.