How do regulators approach blockchain technology in banking?

Regulators around the world are still trying to understand and keep up with the fastevolving blockchain technology in the banking industry. The approach towards blockchain technology in banking differs from one jurisdiction to another. Some regulators are supportive of blockchain technology and encourage its use in the banking sector, while others are more cautious and adopt a waitandsee approach.

In India, the Reserve Bank of India (RBI) has been exploring the potential of blockchain technology in the banking sector. RBI has set up a unit to study and research blockchain technology and is also exploring the possibility of introducing a digital rupee. The Securities and Exchange Board of India (SEBI) has also set up a blockchain committee to explore the use of blockchain technology in the securities market.

Overall, regulators are closely monitoring the use of blockchain technology in banking to ensure that it does not pose any risk to the financial system and to ensure that customer data is protected.