The Institute for Development and Research in Banking Technology (IDRBT) in India has just published a blueprint for implementing blockchain in the banking industry according to a report in India’s Financial Express.
The IDRBT has been working with the government, banks and industry on finding a blockchain solution that can serve as a common platform to launch varied applications. Its blueprint suggests a roadmap for adoption of the new technology that is suitable to a broad range of business and organisation functions, “along with common protocols to ensure interoperability among different entities as there are no regulatory guidelines in place for adoption of blockchain in banks and financial institutions in India.”
Interoperability is one of the challenges the blockchain currently faces, and this roadmap offers ways in which the technology could be adopted in several areas and offers to establish protocols that would allow financial institutions to interact via decentralised platforms.
R Gandhi, former Governor of the Royal Bank of India, said “the banking and financial sector is experiencing cyber risks more because of the increased use of rapidly evolving, sophisticated, and complex technologies, wide use of third-party vendors, increased use of mobile technologies by customers, including the rapid growth of the Internet of Things (IoT) and the heightened cross-border information security threats.”
He also went on to say that data security and data privacy have become a vital point of discussion. From a data privacy perspective the key concern is privacy in a commercial context and the other is in a democratic and human rights context. Gandhi suggested “splitting biometric data into two parts, one the public part to be with the government, and the other, the private part remaining with the individual — the biometric data with the government will be incomplete until the private part is supplied by the individual,” the Financial Express states.
To date, the Indian government has demonstrated a mixed and sometimes hostile approach to crypto-related technologies, but hopefully this blueprint is the beginning of a more friendly approach to it.