The Union Cabinet of India, which is the supreme decision-making body in the country, has finally approved a Memorandum of Understanding (MoU), on the joint research of distributed ledger technology (DLT). The news was first reported by a South Asian news outlet, ANI.
According to the report, the Union Cabinet, led by the Indian prime minister, Narendra Modi, agreed on the necessary need to understand the trailblazing technology on which blockchain is founded.
With the need to improve and foster understanding of the Distributed Ledger Technology; the MOU, a cooperative initiative under the BRICS Interbank Cooperation Mechanism, would be engaged to discover fields and areas where technology can be applied such that better operational efficiency is ensured and achieved.
The Export-Import Bank of India (Exim Bank) and banks from the other BRICS member states would be partnering up to conduct the needed research, along with the following institutions; Banco Nacional de Desenvolvimento Economico e Social (BNDES, Brazil), China Development Bank (CDB), State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconom bank, Russia), and the Development Bank of Southern Africa (DBSA).
Reports of the first proposal were made a few months back, with the first proposal being made in July, at the 10th International BRICS Summit that took place in South Africa, Johannesburg.
The primary objective of the summit was reiteration on the necessity for concerned institutions and parties to cooperate actively in economic development “in the face of the fourth industrial revolution.” Where afterward, the listed banks agreed to foster and invest in the understanding of the distributed ledger technology “in the interests of the development of the digital economy.”
The First Deputy Chairman and a Member of the Board at Vnesheconombank, Mikhail Poluboyarinov, who was present, gave his opinion on the MoU:
“The current agreement allows the development banks of BRICS countries to study the applications of innovative technologies in infrastructure finance and bank products optimization.”
The measure that has been put in place is expected to help bring transparency in governance and ensure efficient public services are duly provided.