The Times of India is reporting that the research arm of the Reserve Bank of India (RBI) has concluded its first trade application test of blockchain technology. The end-to-end test was conducted in collaboration with banks and other financial institutions, clearing houses, and regulators, and was facilitated by the RBI’s Institute for Development and Research in Banking Technology (IDRBT). The project received technical support from cryptocurrency firm MonetaGo, which provided the technology used in the test.
In an interview with the Times of India, MonetaGo CEO Jesse Chenard claimed that this was the first project of its kind to test blockchain technology in a way that mimicked the current protocols upon which modern banking systems rely – thanks to the involvement of not only financial institutions, but clearing houses and regulators as well. Still, Chenard told the Times that widespread use of blockchain technology was not yet imminent:
"Until you have a platform that multiple parties can use and connect to, you can't get a real network effect. As with any new technology, entrants rely on different platforms and methodologies and it will take some time for standards to evolve."
After successfully completing its test, The IDRBT issued a white paper it titled, Applications of Blockchain Technology to Banking and Financial Sector in India. That report details the Institute’s current opinion about the benefits of blockchain technology and examines how it can be used in conventional applications. The paper also offers a possible roadmap for blockchain implementation by the Indian banking industry.