Security Electronic Technology (HK) Limited Examines the Possible Start of the Cashless Economy

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India is steadily moving towards a digital economy with the 2017 Budget advocating the digitalization plan. In December 2016 the Watal Committee on Digital transactions endorsed testing the digital rupee.

The Institute for Research and Development in Banking Technology is coming to a comparable outcome. With a view to addressing this need, block chain technology has been questioned regarding its cost, usage and security issues. The technology is originated from a peer-to-peer network where each node involved has to certify each and every transaction and then accrue all previous transactions.

The technology is not deemed to be developed enough in regards to application security and stability for digital fiat currency. According to the Head of Research & Development Mr. Cheng Luoyang from Security Electronic Technology (HK) Limited, “The technology itself still needs work in respect to gaps in the stability of the system as a whole together with application security.”

These vulnerabilities are due to the freedom of nodes connecting and leaving the network. It is also susceptible to encryption key theft, address spoofing attacks, route deception and the possibility of algorithms being cracked.

Additionally, the possible information leakage is made much larger as every node in the network has a complete record of all previous transactions. Therefore, the cost of the digital fiat currency should be minimal with the loss of physical logistics costs and benefits of riding on existing digital transaction infrastructure.

This makes it a profitable proposition for banks, governments and companies alike. Solutions which are based on a network of peer-to-peer participants would not blend with this fundamental requirement. For block chain the cost for replicating, transmitting and storing the entire payment history at every node will be very expensive.

The limits of block chain technology signal that the correct solution should note that the emergence of the digital rupee is the sole responsibility of the ministry of finance and the Bank of India.

The relevant solution should be the one that is primarily designed for governments to strengthen it as the sole source, controller and supplier of the digital currency.

The security strength of the digital currency (Indian rupee), is built from hardware and security elements which go beyond cryptography algorithms.

It is the next step to implement government-issued digital currency to bring competition, greater consumer protection, and more transparent access to the digital economy.

About Security Electronic Technology (HK) Limited

Security Electronic Technology (HK) Limited provides innovative banking solutions with the main objective of developing, maintaining and deploying cutting edge cyber security technology for financial institutions globally.

Established in late 2012 we develop ground breaking high-end patented encryption technology, to provide security to our clients from digital threats that exist in the modern world.

Our core products are directly designed to facilitate “Banking and Payment” sector solutions. The financial services sector is
rapidly changing and our clients are always looking for more secure options to facilitate their day-to-day transactions.

Media Contact Customer Services Mr Xing Tai | | +852 3008 5822

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