Blockchain A Beautiful Technology, But Anonymity Is An Inherent Risk: FM Sitharaman


Finance Minister, Nirmala Sitharaman on May 7 said that Blockchain is a beautiful technology, but anonymity is an inherent risk and urged precaution while using the technology in the future. 

At a celebration party, Sitharaman said, “The anonymity of the person or whoever or the robot is the one which we have to be absolutely readying ourselves for … a future challenge.” 

The Distributed Ledger Technology (DLT), the blockchain, is ‘absolutely imperative’, and the government also carries the use of the same. 

DLT is a beautiful technology that can enable democratization, but anonymity is an ‘inherent risk’ the country has to protect itself from, Sitharaman said.

Until and unless we are able to protect ourselves from this anonymous element, we probably will be uncovering ourselves much more than ever we would have imagined.

The securities depository began a blockchain-based platform for security and compact monitoring during the event.

SEBI Chairperson Madhabi Puri Buch revealed the advantages of the technology. Unpunctuality, Sitharaman has been very vocal about blockchain technology and cryptocurrencies.

RBI Deputy Governor T Rabi Sankar in February pointed out that cryptos were being used illegally for trade and terrorism. 

During her Budget speech, Sitharaman revealed the plans for the launch of a Central Bank Digital Currency (CBDC). A CBDC is crafted as similar to cryptocurrencies, but may not mandatorily require blockchain technology or consensus mechanisms. 

The US Federal Reserve also showed its interest in launching CBDC. In conclusion, 9 countries have launched their own CBDC.

Meanwhile, the crypto market in India keeps on growing despite policy uncertainty. According to a Chainalysis report, India’s crypto market is expected to grow by 641% from 2020 to 2021, making India one of the largest-growing cryptocurrency markets. 

Russia has primarily revealed its plan to launch a digital Ruble in October 2017.

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