On Friday, Reserve Bank of India Governor Shaktikanta Das focused on an internationally coordinated approach to regulate technology-based operations like blockchain platforms and decentralized finance or Defi.
What did he say in his speech?
During his speech at the FE Modern BFSI Summit 2022, Mr. Das noted, “Does regulation need collaborations? Is it compulsory for a regulator to collaborate with other regulators outside India and other jurisdictions? “
What did he say about blockchain technology?
When it comes to technology, it outperforms regulatory or national boundaries. A relevant example is blockchain technology. Different blockchain platforms are not linked to a regulator or a particular nation.
Again, a relevant example is a decentralized finance, where financial applications are processed on a blockchain with minimum involvement of centralized intermediaries.”
What did RBI Governor say about Defi?
Defi, the RBI Governor said, “causes unique challenges to regulators as its anonymity and lack of a centralized governing body and legal uncertainties can make conventional regulation ineffective.
Therefore, in this case, global collaborations, a regulated approach, and inter-regulatory coordination enable comprehensive assessment of such activities and mitigation of risks.