The popularity of blockchain technology has compelled India to take certain steps to establish a Fintech sandbox to enhance blockchain technology. For its proper regulation and working the Reserve Bank of India (RBI) has made an official draft.
The draft confirms that this financial service will set the stage to launch new advancements in this sector and also sustain the existing technology. The technology will manage the problems of the consumers effectively and ensure better provision of services to them.
Sandbox enables the RBI to better comprehend the innovations and recent advancements in the blockchain sector. Innovative technology in the draft refers to all the applications that come under the sphere of blockchain technology.
The draft confirmed that so far sandbox has not made any progress towards the cryptocurrency and is not dealing with any crypto-related projects. The cryptocurrency related projects include: crypto trading, investing and selling, some crypto related projects which were already banned in India were also not be allowed to be operational.
Last year many crypto-related start-ups have also issued a warning in this regard. The new people coming in this sector have filed a petition to end this ban and allow the start-ups to work on crypto-related projects.
On this demand, the supreme court of India is now reviewing this decision and so far not made any final decision.
The Central Bank of India is looking for new ways in different sectors like digital identity, money transfer services, and mobile payments.
RBI is determined in regard to bringing new tools in blockchain technology and is open to innovations and research in this field.