EAM S Jaishankar Calls For Global Efforts To Curb Misuse Of Blockchain, Crypto

Drawing attention to the use of encrypted messaging and cryptocurrencies by ‘non-state actors’, External Affairs Minister (EAM) S Jaishankar on Saturday (October 29) called for concerted global efforts to curb misuse of new technologies. 

“These very technologies have also thrown up new challenges for the governments and regulatory bodies due to their potential vulnerability for misuse by non-state actors, given the very nature of some of these technologies and the nascent regulatory environment,” Jaishankar said while addressing a special meeting of the United Nations Security Council’s Counter-Terrorism Committee. 

By these ‘new technologies’, Jaishankar was essentially referring to virtual private networks, message encryption apps, blockchain and digital currencies. 

“Internet and social media platforms have turned into potent instruments in the toolkit of terrorist and militant groups for spreading propaganda, radicalisation and conspiracy theories aimed at destabilising societies,” he added. 

The minister also noted that these new technologies had enhanced the capabilities of terrorist groups, lone wolf attackers and their ‘ideological fellow-travellers’ in open and liberal societies. He further added that these negative actors were using technology and money to attack freedom, tolerance and progress. 

Jaishankar also highlighted concerns around use of unmanned aerial systems (drones) by terrorist groups, which he said were piling onto the worries for governments around the world. 

Calling the trend an ‘imminent anger’, the EAM also noted that UAV were being misused by terrorist groups to deliver weapons and to carry out targeted attacks. 

“They are, therefore, a challenge for security agencies worldwide. The possibilities of using weaponised drones for terrorist purposes against strategic, infrastructure and commercial assets call for serious attention by the member states,” he added. 

Calling for a global coalition to curb the misuse, Jaishankar also reaffirmed India’s commitment to strengthening international efforts to combat the use of new and emerging technologies for nefarious purposes. 

Walking A Tightrope

Jaishankar’s comments follow a long line of statements from the government highlighting the use of emerging technologies for terror financing and money laundering. Previously, Finance Minister Nirmala Sitharaman also called for a global coalition to clamp down on usage of cryptocurrencies for terror financing. 

India has repeatedly called for global regulations for the crypto industry and has also received support from personalities like International Monetary Fund (IMF) MD Kristalina Georgieva and some other organisations. 

Back home, the Reserve Bank of India has more or less worked out plans for a homegrown central bank digital currency (CBDC), all while panning virtual currencies such as Bitcoin. 

Amidst all these, the Centre continues to walk a tightrope between outrightly banning such products and regulating them. 

Earlier, virtual currencies belonging to Indians have landed in the accounts of terrorist groups such as Al-Qaeda, Islamic State and even Hamas. On the other hand, drones were recently used to carry out strikes at an air base in Jammu. 

With the world at the cusp of a technological revolution, the associated challenges cannot be swept under the rug. While the EAM highlighted the issues, it needs to be seen if the government can strike a perfect balance between innovation and misuse.