The Indian securities board will monitor bonds with the help of Blockchain technology and will welcome other entities to join the network so let’s read more today in our latest blockchain news today.
The National Securities Depository, the Indian Securities board based in Mumbai launched blockchain-based security and a monitoring platform. NSDL launched the distributed ledger technology platform just a few days ago during the 25th-anniversary presentation alongside the Securities and Exchange Board of India. The platform will enhance the monitoring of security and governance in the corporate bonds market and bring more transparency to the market.
The SEBI chairperson Madhabi Puri Buch said the blockchain brings bigger transparency as the key reason for the technology’s popularity but made a reservation about the current cost-effectiveness and remarked that the anonymity features are highly unwelcomed by the Indian authorities:
“This is the single biggest differentiator between private DLT manifestations and what we commonly refer to as Central Bank Digital Currencies where it is not envisaged that this aspect of the technology would be put to use as we don’t wish to have anonymity.”
The network will get maintained by two nodes the NSDL and the Central Depository Services LTD which is a SEBA division and will control. Buch specified other entities will have a chance to join the network and established their nodes in the future. India’s oldest depository controls 89% of the country’s securities market and now all of the data that was stored in centralized databases will be cryptographically signed and added to the ledger.
The Indian Ministry of Electronics and Information Technology issued a directive and required crypto exchanges, VPN providers, and data centers to store a wider range of user data for up to five years. The trading volume on top Indian exchanges dropped by 70% in the aftermath of the 30% crypto tax rule which came into effect on April 1.
Hailing blockchain as imperative, India’s Finance Ministry and the minister Nirmala Sitharaman asserted that the anonymity factor of the technology is an inherent risk and calls for taking precautions but she also accepted that private cryptocurrencies like BTC are fairly well spread in the country. The minister clarified that the Indian Government supports the use of distributed ledger technology which is known as blockchain but as its usage grows in the future and gets even more widespread but there’s a need to be wary of the anonymity factor:
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]