India’s central bank is setting up a FinTech department to drive innovation, oversee the exchange of cryptocurrencies and develop regulations for the release of its upcoming central bank digital currency (CBDC), according to multiple media reports on Monday (Jan. 10).
The Reserve Bank of India (RBI) named Ajay Kumar Choudhary, currently the chief general manager of the RBI, to serve as the executive director of the new department. He will oversee the central bank’s development of two kinds of CBDCs — wholesale and retail.
Aside from heading the FinTech department, he will also oversee the Risk Monitoring Department and Inspection Department, according to a CoinDesk report.
“You can expect much more action from Mr. Ajay Kumar Choudhary towards the Central Bank Digital Currency. This may signify a shift from the RBI’s stance towards fast-tracking CBDC piloting,” a source told CoinDesk.
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The FinTech department will deal with all matters related to inter-regulatory and international coordination on FinTech and report to the RBI’s centralized administration division. The department will also develop a framework to conduct in-depth research on FinTech issues that can be used to assist policy interventions.
“It’s a positive signal of intent to build real regulatory capacity to oversee the fast-paced fintech industry,” technology and policy expert Vivan Sharan told CoinDesk.
“It is also a reflection of the central bank’s desire to deepen digital payments through a focus on innovation, and a recognition of the growing importance of various forms of digital money that will require supervisory bandwidth,” Sharan said.
Read more: RBI Supports a Full Ban on Cryptocurrencies in India
RBI Governor Shaktikanta Das is a vocal opponent of launching cryptocurrency in India and has warned against its use and the wealth it creates. It’s not known how many people trade crypto in India, but the biggest exchanges put the number of users in the millions.
WazirX, among the country’s biggest crypto exchanges, said India had 20 million crypto users in the fourth quarter of CY2021.
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