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‘Cryptocurrency data trail must be secured’
Welcoming the RBI’s move to explore introduction of an official virtual currency in India, industry chamber Assocham on Sunday cautioned that extreme care be taken to ensure safety of the data trail that cryptocurrency transactions can leave behind.
By
migrator
migrator
New Delhi
Placing a ban on all regulated entities, including banks, from dealing in virtual currencies like bitcoins, the Reserve Bank of India said on Thursday that it is exploring a “fiat digital currency”.
“Of course the inter-departmental study group of the RBI would examine all the safety aspects when it starts working on exploration of the cryptocurrency which has been introduced by private parties in several parts of the world and has attracted a lot of attention,” an Assocham release said here.
“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,” the release said.
The industry body said 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,” it said.
“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.”, Assocham Secretary General DS Rawat said.
OLD GOLD USED TO WOO ISLAMIC INVESTORS
Virtual currency traders launch instruments
- In Dubai’s decades-old Gold Souk, global customers haggle over bangles and necklaces. Elsewhere in the Emirate, the region’s top centre for gold trade, bullion is playing a new role in financial engineering.
- The global surge of interest in bitcoin, ethereum and other cryptocurrencies extends into the Gulf and SE Asia, the main hubs of Islamic finance.
- But as they are products of financial engineering and objects of speculation, cryptocurrencies sit uneasily with Sharia principles. In addition to banning interest payments, they emphasise real economic activity based on physical assets and frown on pure monetary speculation.
- That has triggered debate among scholars whether cryptocurrencies are religiously permissible. Cryptocurrency firms are launching instruments based on physical assets and certified as valid by advisors.
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