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Privacy, data leak, data trail, strategic issues to need RBI focus on crypto currency: ASSOCHAM

 

Sunday, April 08, 2018


New Delhi, 7 April 2018:
 Describing the RBI move to explore and examine introduction of official virtual currency in the country, the ASSOCHAM has, however, cautioned that extreme care be taken to ensure safety of the data trail that the crypto currency can leave as it changes hands through a range of electronic devices and platforms.
 
"Of course the inter-departmental study group of the Reserve Bank of India would examine all the safety aspects when it starts work on exploration of the crypto currency which has been introduced by private parties in several parts of the world and has attracted a lot of attention. The need for safety is highlighted more by the recent and serious incidents of breach of the Facebook data of as many as 87 million users all over the world," said the chamber
 
The ASSOCHAM Secretary General Mr D S Rawat said, though the number of users affected by the Facebook data breach is less at about half a million in India," more and more Indians are going digital. While we cannot isolate ourselves from the ever rising number of technology platforms, each and every individual who would be using the virtual currency must be protected against fraud, data leak etc."
 
Needless to say, the liability of the RBI as is the case with the hard currency would be clearly defined in the case of virtual currencies. "Different situations of usage of the virtual currency have to be simulated," said the ASSOCHAM.
 
However, it must be stated that it is quite pragmatic and courageous of the RBI to initiate exploratory steps towards the world of virtual currencies. "A high level of coordination among all the central banks would be required along setting up some kind of a global oversight to guard against misuse of the new currency by the anti-social elements, terrorists, enemy countries".
 
The burning issue of privacy which is being debated and adjudicated by the Supreme Court would also need to be examined thoroughly from legal and other angles. Besides, the users have to be educated enough and a great amount of inter-face with departments like tax authorities would be required for the launch of the new currency as and when it happens.
 
"Thus, the inter-departmental committee of the RBI can even think of expanding its scope and consider presence of even private sector experts in the areas of cyber security, technology platforms and defence related strategic issues". 
  
 
About ASSOCHAM:

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
For further details, please contact:
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AVDHESH SHARMA   
ASSOCHAM
ASSOCHAM   
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