Cabinet approves MoU on blockchain by Exim Bank

The Cabinet Wednesday approved an agreement on collaborative research on distributed ledger and blockchain in context of development of digital economy by Exim Bank with the participating member banks under BRICS Interbank Cooperation Mechanism, an official release said.

The ex-post facto approval for the Memorandum of Understanding (MoU) was given by the Cabinet chaired Prime Minister Narendra Modi.

Distributed Ledger/Block chain technology holds potential for solutions to various challenges being faced in the financial sector space of the BRICS nations.

"The MoU intends to enhance understanding of Distributed Ledger/Block Chain technology, through the joint research efforts to identify areas within respective business operations where it may have the potential for applications aimed at enhancing the operational efficiencies," the release said.

The Xiamen Declaration signed in China on digital economy by the BRICS leaders had highlighted the importance of the digital economy and how the nations could leverage the thriving and dynamic digital economy that will foster global economic development and benefit everyone.

Accordingly, the MoU was suggested to be inked by all member banks.