FM flags anonymity as ‘inherent risk’ in use of blockchain


PTI, May 7, 2022, 7:18 PM IST

Source: YouTube / File

Mumbai: Finance Minister Nirmala Sitharaman on Saturday flagged anonymity as an ”inherent risk” in blockchain technology and called for taking precautions in the future with a rise in the use of this technology.

The finance minister made it clear that using the distributed ledger technology (DLT), which is also called as blockchain, is “absolutely imperative” and the government also supports the use of the same.

The minister’s remarks come ahead of the launch of the budgetary announcement of central bank digital currency (CBDC) which is based on the blockchain technology itself and is billed as being similar to the paper currency carried in our wallets. “…the anonymity is what … one unknown element in this whole thing. The anonymity of the person or whoever or the robot is the one which we have to be absolutely readying ourselves as … a future challenge,” Sitharaman said, addressing an NSDL event here.

Sitharaman said the DLT is a beautiful technology that will help in democratization but flagged anonymity as an “inherent risk” that we need to guard ourselves from.

Terming anonymity as a “powerful imponderable” in the whole equation, Sitharaman said, ”unless we are able to guard ourselves against that anonymous element which can itself pose an inherent risk, we probably will be exposing ourselves much more than ever we would have imagined.”

Sitharaman commended capital markets regulator Sebi chief Madhabi Puri Buch, who spoke before her at the same event, for “rightly warning” us about the risk of anonymity, and also for advocating DLTs.

Buch said we do not wish to have anonymity in the CBDC, which is supposed to be introduced during the fiscal by the banking regulator RBI. As per the central bank, considerable progress has been made regarding the introduction of the CBDC.

Meanwhile, Sitharaman said private cryptocurrency assets like Bitcoins are “fairly well spread” in India. Buch said the strengths of DLTs include transparency, real-time, infinite divisibility and it is a cost-effective medium.

Sitharaman said the retail investment journey has transformed in the last two or three years, with new Demat account opening zooming to 26 lakh per month in FY22 from 12 lakh in FY21 and just 4 lakh a month in FY20.

She said the retail investors act as “shock absorbers” as the foreign portfolio investors have come in and gone as per the global cues.

Pointing out to the total USD 4 trillion in custody value held by NSDL, Sitharaman said the buoyancy in retail account opening is a prime reason for the high asset value. A postage stamp and cover commemorating NSDL’s 25-year-long journey was also launched at the event. The depository also kick-started a programme aimed at initiating educating college students about capital markets.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Maharashtra Polls: Eknath Shinde targets Uddhav for `giving up’ Bal Thackeray’s principles for power

Will appear before Lokayukta for questioning in MUDA case, says CM Siddaramaiah

Lies have short life, Cong’s ‘fake’ narrative smashed: Fadnavis

Temple idols found desecrated in Hyderabad, case registered

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

JPC chairman Jagdambika Pal to visit K’taka on Nov 7 to meet farmers protesting Waqf notices

Indian boxer Mandeep Jangra wins WBF’s world title

Related Articles More

CBDT allows tax officials to waive or reduce interest due from assessee

Markets fall in early trade amid unabated foreign fund outflows

New software for fast-tracking project approvals: Karnataka Minister Patil

In-flight passengers can access WiFi services only when allowed, say new rules

SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Davanagere: Man murdered by relative for insurance money; 4 arrested within 24 hours

Heroin worth Rs 3.5 crore recovered in police raid in Delhi, 2 arrested

Govt clerk found dead in Tahsildar’s chamber, FIR filed against minister’s PA, 2 others

Treated Muslims like fuel for ‘lantern’: Prashant Kishor targets Lalu, asks upper castes to stay away from Nitish

MP Brijesh Chowta urges Kerala CM for strict action against attack on Edneer Swamiji’s vehicle

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.