Finance Minister Nirmala Sitharaman has advised caution regarding blockchain technology. Nirmala Sitharaman said that ‘anonymity’ is an inherent risk and there is a need to exercise caution in view of the increasing use of this technology.
Along with this, Nirmala Sitharaman made it clear that using ‘Distributed Ledger Technology (DLT)’ ie ‘Blockchain’ is completely ‘inevitable’ and the government also supports its use. Sitharaman said, “There is an unknown element in this whole thing. It can be a person, a robot, anyone and we are preparing ourselves to consider that as a future challenge.
Describing DLT as a great technology, as well as calling anonymity the risk associated with it, he said that we have to protect ourselves from this.
At the same time, Madhavi Puri Buch, chairperson of the market regulator Securities and Exchange Board of India (SEBI), said that we do not want any unknown factor in the CBDC. Let us tell you that India is preparing to bring its own digital currency ‘CBDC’ which will be based on Blockchain technology only. Sitharaman had announced the introduction of CBDC while presenting the budget for the financial year 2022-23.