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Indian finance minister praises blockchain, but there’s a catch Blockchain is good but anonymity factor a risk, says Indian finance minister

Indian Finance Minister Nirmala Sitharaman, who Blockchain as “absolutely essential”, explained that the anonymity factor of this new technology was an “inherent risk” and that precautions were needed. However, she accepted that private cryptocurrencies how Bitcoin are “fairly widespread” in India.

Sitharaman clarified that the Indian government supports the use of distributed ledger technology (DLT), also known as blockchain, but as its use grows and becomes widespread in the future, one has to beware of the anonymity factor.

“The anonymity is what is … an unknown element in this whole thing. The anonymity of the person or whoever or the robot is what we absolutely must prepare for as … a future challenge,” Indian private broadcaster NDTV quoted Sitharaman as saying.

NSDL launches blockchain-based services

The Indian Finance Minister’s statements came amid a program organized to mark the Silver Jubilee celebrations of the National Securities Depository Limited (NSDL), which saw the launch of a blockchain platform for monitoring debt securities and conventions.

“The information stored in the system is cryptographically signed, timestamped and sequentially added to the ledger. It would provide an auditable audit trail of transactions, thus enhancing confidence in the market as these assets are continually monitored with a strong and immutable transaction audit trail,” said a press release from India’s Treasury Department on the new NSDL Blockchain feature.

Sitharaman’s statement about “anonymity” in the blockchain – perhaps alluding to the fact that central banks or governments cannot spy on transactions – is seen as advertising the CBDC, which the government plans to introduce in the current fiscal year.

In a speech to India’s Finance Minister, Securities and Exchange Board of India (SEBI), Chief Madhabi Puri Buch also spoke about “the risk” and said that the Indian CBDC will not have an element of anonymity.

Crypto is popping up more frequently in Indian FM’s discussions

Recently, Indian Finance Minister Sitharaman has spoken more frequently and with a bit of frosting about crypto and blockchain. Speaking at Stanford Medicine on April 27, she said blockchain has potential but the government cannot make a hasty decision about digital assets.

On April 19, she participated in an IMF-hosted panel discussion, “Money at a Crossroad: Public or Private Digital Money,” where she advocated for a global framework to prevent cryptocurrencies from being used for money laundering.

A policy of high taxation that came into effect on April 1, 2022 and a general non-cooperation by Indian banks have hurt the digital asset market in India. In parliamentary discussions, some members warned the government that these moves would lead to an innovation flight from India.

Source: Crypto News Deutsch

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