Wednesday 25 May 2022
- Advertisement -

Blockchain technology’s anonymity factor makes government uneasy

Nirmala Sitharaman's remarks appear ahead of the launch of the budgetary announcement of central bank digital currency based on blockchain technology

Join Sirf News on


Finance Minister Nirmala Sitharaman today expressed the concern of the government for the anonymity factor, which she said was an “inherent risk” in blockchain technology and called for taking adequate precaution in the with a rise in the use of bitcoins.

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

The minister’s remarks appear ahead of the launch of the budgetary announcement of central bank digital currency (CBDC) based on blockchain technology and are being seen as 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 challenge,” Sitharaman said, addressing an NSDL event in Mumbai.

The finance minister said the DLT was a beautiful technology that would help in democratisation but flagged anonymity as an “inherent risk” that the country needed to guard against.

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 markets regulator Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch, who spoke before her at the 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 banking regulator RBI.”

According to the Reserve Bank of India, considerable progress has been made in the introduction of the CBDC.

Meanwhile, the finance minister said private cryptocurrency assets like Bitcoins were “fairly well spread” in India.

Buch said the strengths of DLTs included transparency, real-time monitoring, infinite divisibility and a cost-effective means.

Contribute to our cause

Contribute to the nation's cause

Sirf News needs to recruit journalists in large numbers to increase the volume of its reports and articles to at least 100 a day, which will make us mainstream, which is necessary to challenge the anti-India discourse by established media houses. Besides there are monthly liabilities like the subscription fees of news agencies, the cost of a dedicated server, office maintenance, marketing expenses, etc. Donation is our only source of income. Please serve the cause of the nation by donating generously.

Join Sirf News on


Similar Articles


Scan to donate

Swadharma QR Code
Sirf News Facebook Page QR Code
Facebook page of Sirf News: Scan to like and follow

Most Popular

%d bloggers like this: