BRICS representatives have marked a Memorandum of Understanding (MoU) with EXIM Bank. Recently, The Indian Union Cabinet gave its ex-post facto acceptance to conduct shared research on Blockchain Technology and Distributed Ledger Technology by Export-Import Bank of India (Exim Bank) with member banks of BRICS – Brazil, Russia, India, China, and South Africa. Prime Minister Narendra Modi was the chairman of this cabinet which was held in New Delhi.
The member banks are BNDES from Brazil (Banco Nacional de Desenvolvimento Economico e Social), CDB from China (China Development Bank), Vnesheconombank from Russia and DBSA from South Africa (Development Bank of Southern Africa).
The blockchain is a digitized, decentralized ledger to record ongoing exchanges globally. Distributed ledger is a database that is held and refreshed freely by every member in an extensive system over various locales, establishments or topographical territories.
When did it start?
In July, the Indian territory of Telangana had marked MOUs with blockchain organizations to implement the innovation in state keeping in mind the end goal to streamline government services.
Around the same time, the MOU was at first considered at the tenth International BRICS Conference held in Johannesburg. Its key center was the collaboration in the economic development, and the banks were agreed to mutually examine the Distributed Ledger Technology for the growth of the digital economy.
First Deputy Chairman and a Member of the Board at Vnesheconombank of Russia, Mikhail Poluboyarinov said that,
“The current agreement allows the development banks of BRICS countries to study the applications of innovative technologies in infrastructure finance and bank products optimization.”
Last week on Sep. 6, the plantation campaign started by the New Delhi Municipal Council (NDMC), used Blockchain Technology to monitor over 10,000 saplings’ maintenance and growth.
Also, there is the news that Bankura Municipal Corporation and Durgapur Municipal Corporation that are located in West Bengal will use Blockchain Technology to issue the Birth Certificates.
The Memorandum of Understanding became effective after the Xiamen Declaration marked a year ago by BRICS representatives meet in China. The Xiamen Declaration additionally features how the BRICS nations could use the digital economy to instigate the worldwide financial development.
The cabinet stated,
“Distributed ledger or blockchain technology holds potential for solutions to various challenges being faced in the financial sector space of the BRICS nations.”
Finance Minister of India, Mr. Arun Jaitley, in his Union Budget speech on Feb. 01, announced the plans to explore the Blockchain Innovation.
“The Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegal activities or as part of the payment system. The Government will explore the use of Blockchain technology proactively for ushering in the digital economy.”
As per the report, the research has already started and is being led with the China Development Bank, Banco Nacional de Desenvolvimento Economico e Social from Brazil, the Development Bank of South Africa and the Vnesheconombank from Russia. This move will help India to achieve its goal to develop the digital economy in the country.