The crypto-currencies are digital currencies that are managed through advanced encryption techniques, many governments have taken a cautious approach toward them, fearing their lack of central control and the effects they could have on financial and national security.
Date & Time: March 21, 2022 | 6:00PM IST
Shri Satish Marathe started his Banking career in Bank of India and rose to be the Chairman and CEO of The United Western Bank Ltd. (from 2002 to 2006). Earlier, in September 1991, became CEO of Janakalyan Sahakari Bank Ltd. which recorded high consistent growth during his 10 years tenure. He is the Founder Director of Centre for Studies & Research in Cooperation, a Foundation registered under Section 8 of Indian Companies Act, 2013 for undertaking Study and Research in the Cooperative Sector.
Shri Mrugank Paranjape is the Managing Director & Chief Executive Officer of NCDEX e Markets Limited, the Non-Executive Independent Director in the Central Board of the State Bank of India, the Chair of the Board of the Mumbai School of Economics & Public Policy and a Trustee on the Board of Sewa International.
Shri Sameep Agarwal is a seasoned Information security professional with more than ten years of experience in the domain. His love with programming languages started at an early age and further matured into passion to learn reverse engineering applications to understand the working and exploit for educational purpose.
Synopsis of the Webinar
A webinar was held on March 21st, 2022 on a Topic “Crypto- A Threat to the National Security”? The webinar was in the form of Panel Discussion with three eminent persons from the Banking, Financial markets and cyber world namely Shri. Satish Marathe, Shri. Mrugansh Paranjape and Mr. Sameep Agarwal participated as speakers.
Shri Satish Marathe, a distinguished banker and currently Director, Central Board, Reserve Bank of India opened the discussion. He explained the evolution in the Indian Payment System and expressed it is one of the best networks in the world. He opined that with the presence of NEFT & RTGS and digital payment mechanism, writing cheques could be the history in near future. He explained that in the last few years, there is an awareness and discussion about Crypto's, particularly in English media. He highlighted that Crypto is neither a commodity, or a currency or a virtual asset. The pricing of the Crypto’s is opaque and there are no underline assets to back it. It does not leave any Audit trail and there is a great chance that the Crypto’s could be misused for anti-social and national activities. He expressed that we shall not recognize the Crypto’s unless we have suitable infrastructure to address the diverse issues associated with it.
The Second Speaker in the discussion Shri Mrugank Paranjape, renowned banker and currently the Managing Director & Chief Executive Officer of NCDEX e Markets Limited, also the Non-Executive Independent Director in the Central Board of the State Bank of India highlighted the Block chain technology and Crypto asset wallets and their utility in the Crypto’s architecture. He stressed that we should not ban Crypto’s rather it should be regulated with acceptance of Crypto’s as a Digital Asset Class. He suggested that we can accept Crypto’s as a digital asset class. He further opined that while we ensure the participation as well as protection of investors, the taxing of the gains on Crypto’s could be the revenue source to the economy at large. The retail investors who do not understand the issues pertaining to the Crypto’s, should not be allowed investing in it.
The third and last speaker of the evening was Shri Sameep Agarwal a seasoned Information security professional and expert in the field, and currently working with Mahindra Defense Systems Limited as Associate Consultant, highlighted the cyber issues and in particularly the use of Crypto’s could pose a threat to the National Security in terms of human trafficking, the illegal trade of drugs and other terrorist activity funding. These threats could disturb the cultural fabric of the society and country at large. He highlighted that the trading in the Crypto’s goes beyond the traditional surveillance systems and goes unnoticed. He expressed that cyber-attacks on the financial infrastructure could really put the economic system out of gear.
In the end panel observed that
• The Crypto’s could be treated as a virtual digital asset.
• The Crypto’s if misused then it could pose a threat to the financial system and country.
• The Crypto’s may not lead to a rich-poor divide, but it might be used as a tool in certain situations to mislead people and to create social unrest.
• India needs a strong surveillance mechanism to check the cross border transactions, particularly in Crypto’s.
• India could adopt the Crypto’s with suitable infrastructure to manage multi-dimensional issues pertaining to it.
The Programme ended with Advt. Balasaheb Desai - Secretary-General FINS proposing the vote of thanks at the end.
