Rahul Matthan on AI, Privacy, and Digital Public Infrastructure
Feb 8, 2024
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Rahul Matthan, a technology lawyer and partner at Trilegal, discusses India's digital public infrastructure, the unified payments system, AI, blockchain, and privacy concerns around Aadhaar. He addresses the challenges of maintaining privacy in the era of advancing technology and explores the impact of DeepFakes on reputation and authenticity.
Privacy is not just about keeping information private, but also about having control over who can access that information.
The advent of new technologies often leads to a loss of control over personal data due to the constant invasion of privacy.
India's digital public infrastructure aims to combine principles from laissez-faire regulation and regulatory heavy approaches to provide effective legal regulation while fostering technological innovation.
Deep dives
The importance of control in privacy regulations
The podcast episode discusses the idea that privacy is not just about keeping information private, but also about having control over who can access that information. The current privacy framework in India is seen as lacking in providing individuals with the ability to customize their level of inclusion or exclusion. The privacy law in India has recently been enacted, but the specific rules and regulations are still unclear. Currently, the private sector has more freedom in handling privacy than the government due to the fundamental right to privacy guaranteed by the courts. However, the speaker emphasizes that the challenge of control over privacy is not unique to India and is a global issue related to the rapid evolution of technology.
The intersection of technology and privacy concerns
The episode explores the deep and complex relationship between technology and privacy issues. The advent of new technologies often leads to a loss of control over personal data due to the constant invasion of privacy. The speaker argues that privacy legislation is often a response to new technologies. The emergence of artificial intelligence (AI) raises significant concerns about personal privacy. While granular control over privacy is desirable, it is also challenging due to the complexity of understanding and exercising control over rapidly evolving technologies. The speaker references the Cambridge Analytica case, demonstrating the unintended consequences of granting access to personal data. The need to balance control with the benefits of technology remains a difficult question with no clear solutions.
The balance between tech as regulation and law as regulation
The episode delves into the balance between technology and law as regulatory tools in India's digital public infrastructure. The speaker discusses the concept of the 'Third Way,' which aims to combine principles from laissez-faire regulation and regulatory heavy approaches. The idea is to build legal principles into the protocols of digital platforms to ensure compliance with high-level regulations. This approach allows for flexibility in adapting to evolving technologies while maintaining legal oversight. However, the speaker acknowledges the need for specialized technical standards organizations to continuously upgrade and innovate the protocols to keep pace with technological advancements. The goal is to provide effective legal regulation while fostering technological innovation.
The concerns and benefits of India's digital public infrastructure
The podcast episode presents the concerns and benefits of India's digital public infrastructure, with a particular focus on the Unified Payments Interface (UPI) and the Open Network for Digital Commerce (ONDC). UPI is praised for its interoperability and how it has revolutionized digital payments, simplifying transactions and enabling financial inclusion. ONDC is discussed as a solution to mitigate the dominance of large tech companies. However, concerns arise regarding the centralization and control exerted by the government in the ecosystem. The need for continuous innovation and technical expertise within the digital public infrastructure is highlighted, suggesting the establishment of technical standards organizations to ensure ongoing development and effective regulation.
Digital payments ecosystem and its limitations
The speaker highlights that the digital payments ecosystem is a subset of the broader payments ecosystem and is subject to the limitations imposed by the banking system. They argue that the issues faced in the digital payments space are primarily banking system problems and not exclusive to digital payments. The speaker emphasizes that digital payments cannot enable entities not permitted by the banking system. They discuss the concept of public goods and question whether the digital payments infrastructure should be non-excludable, highlighting that the decentralized nature of e-commerce and other networks was aimed at eliminating barriers to entry. However, digital payments are subject to regulatory control, resulting in the exclusion of certain entities from the system.
Convergence of blockchain and centralized systems
The speaker explores the tradeoff between decentralized blockchain systems and centralized systems in terms of privacy, trust, and efficiency. They argue that while blockchain offers superior privacy and protection from surveillance, centralized systems excel in ease and efficiency of transactions. However, the speaker anticipates a convergence between the two through innovations like Ethereum and central bank digital currencies (CBDCs). They highlight the need to leverage the features of blockchain, such as tokenization and smart contracts, in traditional digital payment systems. The speaker also acknowledges the challenges faced by blockchain technology, including concerns about macroeconomic interference and the need for governance frameworks. They predict a future where layer two and layer three innovations on the blockchain will be integrated into traditional payment systems, leading to increased inclusivity, better governance, and greater efficiency.
Today my guest is Rahul Matthan, a technology lawyer and partner at Trilegal. He assisted the Indian government in developing India’s data privacy law and he is the author of the recent books Privacy 3.0 and The Third Way. We spoke about India’s digital public infrastructure revolution, India’s unified payments system, AI, blockchain, the design issues around India’s NCPI, Aadhaar, privacy, and much more.
