New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has given its ex-post facto approval for the Memorandum of Understanding (MoU) on collaborative research on distributed ledger and blockchain technology in the context of development of digital economy by Export-Import Bank of India (Exim Bank) with the participating member banks, under the BRICS Interbank Cooperation Mechanism.
Distributed ledger/blockchain 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/blockchain 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 member banks are Banco Nacional de Desenvolvimento Economico e Social (BNDES, of Brazil), China Development Bank (CDB), State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank, of Russia) and Development Bank of Southern Africa (DBSA).
Earlier, the Xiamen declaration signed in China on digital economy by the BRICS leaders had highlighted the importance of the digital economy and how the BRICS nations could leverage the thriving and dynamic digital economy that will foster global economic development and benefit everyone. Accordingly, the agreement was suggested to be inked by all member banks.