Reserve Bank of India publicly supports blockchain technology

For those active in the bitcoin industry, a few things happened recently that made all of this start to make sense, while others are still trying to catch up. Blockchain technology — the technology that powers the bitcoin network — could be used not only in financial services, but in other industries as well. A recent article details how the Reserve Bank of India has recognized the potential value of blockchain, including protections against copycats.

Reserve Bank of India praises blockchain technology

Slowly, central banks around the world are beginning to warm to the technology that powers the Bitcoin network. Until a few years ago, these institutions had declared Bitcoin and its related technologies to be worthless for future development.

Today, some major banks have joined one of the world's largest blockchain technology alliances. The significance of blockchain technology has far exceeded the financial services industry, ecosystem, and even Bitcoin itself, so there are still many development possibilities worth exploring.

Don’t be fooled into thinking that these banks will suddenly start rushing into the Bitcoin industry, because that’s simply not possible. That being said, for digital currency enthusiasts, the Reserve Bank of India’s public appreciation of blockchain technology is a big step in the right direction. It also creates conditions for future cooperation between blockchain developers and the traditional financial industry.

The Reserve Bank of India issued a statement regarding blockchain technology, saying:

"With its potential to combat counterfeiting, 'blockchain' technology is likely to revolutionize the way financial markets, collateral (e.g. land records) and payment systems function. Blockchain technology is based on a shared, secured, public ledger that is not controlled by any single ('central') user, but rather is maintained by all participants based on a set of universally agreed and strictly applied rules. "

The Reserve Bank of India even admitted that the current record-keeping system relies heavily on trust and central control. Over the years, trust has been severely eroded and new solutions with more transparency and scalability must be found.

Unlocking the potential of blockchain technology

Currently, most financial institutions are looking for ways to create private blockchains and accelerate their internal systems.

Standardizing the use of blockchain technology is the main point of this disruptive concept and the first step to realizing the full potential of this technology.

Regarding counterfeit goods, blockchain technology will also be useful. Companies like Everledger want to use blockchain technology to identify their gems to combat diamond theft and counterfeiting. Healthcare and retail industries, which are plagued by counterfeit goods, will also benefit from blockchain technology.