With the rise of sandboxes among financial regulators in many countries worldwide, companies that are doing research in financial technology (fintech) now have platforms to put their projects to trial with select customers for a limited time.
Cointelegraph reported that recently, the Reserve Bank of India (RBI) announced the criteria for projects that are eligible for its sandbox, revealing that blockchain-based projects may be put to test, while cryptocurrency applications and developments are banned.
Three years prior, the RBI had revealed that it is making efforts to keep up with the ever-developing fintech market, reviewing its framework to adapt to the rapid changes. The RBI has now decided that the sandbox is a platform where blockchain-based “innovative technology” can be put to experiment among users while offering the central bank an opportunity to review whether the technology calls for regulations in order to protect users.
The sandbox is restricted to blockchain applications relating to data analytics, artificial intelligence (AI), or machine learning, as well as mobile-based payments in the “innovative technologies” sector. For “innovative products and services,” projects may consist of those relating to money transfer services, smart contracts, digital KYC (Know-Your-Customer) checks, and cybersecurity products.
On the other hand, cryptocurrencies are not eligible for the sandbox, while initial coin offerings (ICOs) and other forms of crypto exchanges are discouraged as well. Innovative services and products which have been announced as banned by the Indian government and regulators will not be allowed to apply.
About Asia Blockchain Review
Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.
Follow Asia Blockchain Review on:
We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us