Our Bureau
Singapore
Ashish Chauhan, MD & CEO of the National Stock Exchange (NSE), recently shared his insights on the global financial landscape at a panel discussion in Singapore. He emphasized that the US dollar is likely to maintain its dominance as the world’s reserve currency. Chauhan argued that while other nations, like China, possess significant economic power, they lack the financial transparency and openness required to replace the US dollar in this role.
He also highlighted the historical context, noting that the US strategically positioned the dollar as the global reserve currency after World War II, and no other country seems ready to take on that responsibility. Chauhan’s remarks were part of a broader discussion on global markets, technology’s impact on capitalism, and the evolving role of international institutions.
Chauhan’s perspective on market volatility challenges the conventional view that fluctuations are inherently negative. By comparing volatility to a heart monitor, he suggests that just as a steady heartbeat indicates health, a certain degree of market fluctuation signals a dynamic and functioning economy. The key point he makes is that the problem isn’t volatility itself, but whether it can be effectively managed and contained to prevent harmful instability.
Chauhan talked about the decline of institutions like the UN, WTO, and WHO reflecting a growing sentiment that traditional global organizations are losing their relevance in today’s geopolitical climate. He argues that the world is shifting towards a more transactional approach, rather than rule-based systems.
Chauhan’s concept of “Capitalism without Capital” challenges the traditional notion that economic growth is dependent on significant financial investments. As per him, technology has fundamentally disrupted this model. With innovations like AI, blockchain, and digital platforms, businesses can now scale quickly without requiring large upfront investments. The thriving startup ecosystem in India and the surge of micro-IPOs on the National Stock Exchange (NSE) demonstrates this changing dynamic of business and economic growth.
By highlighting that only about 2 percent of the 110 million market participants engage in active derivative trading, he underscores that the vast majority of Indian investors are focused on long-term growth with systematic investment plans (SIPs). With 50 million participants, SIPs have become a significant stabilizing force in Indian markets.
Chauhan reminded about malicious activities and informed that National Stock Exchange (NSE) experiences between 40 to 100 million cyberattacks every day. As per him, cyber attackers only need to succeed once in ten years while market defenders need to be vigilant every day, highlighting the disproportionate nature of the threat and constant pressure on financial institutions.
Moreover, Chauhan’s personal experience with deepfake technology further amplifies the dangers of misinformation in the digital age, serving as a warning for regulators and institutions to stay ahead of these emerging threats in an increasingly digital world.
Chauhan’s remarks at the panel discussion encapsulated the profound shifts occurring in the global landscape with decline in traditional power structures and technology disrupting established financial models. This volatility signals that transformation is happening as growth often comes with unpredictability.
His key message for investors was the importance of adaptability. Chauhan’s final reminder echoes a timeless truth: history favors those who embrace transformation, as they are the ones who ultimately shape the future.
