Telecommunications Minister Renee Webb yesterday kicked off a conference being held this week for up to 75 international technology-industry delegates.

In opening the sixth annual International Financial Cryptography Association Conference, Ms Webb said: "I will not pretend to have a deep and comprehensive understanding of cryptography; but I am fully aware of its importance both in a historical context and now - today - in this connected but insecure world of ours."

The Minister went on to highlight the importance of cryptography in today's digital world: "Whether it is the encryption that protects inter-bank transfers, or the strong authentication that facilitates electronic and Internet-based market making on international exchanges, the flows of international finance clearly depend on it.

"I do not think it is an exaggeration to say that cryptography essentially underpins the majority of e-commerce that is now taking place across the globe."

Looking at the local situation, Ms Webb said: "What is important internationally is also important for Bermuda. Our economy - historically based on tourism and agriculture - is now firmly based on international business and particularly financial services and insurance. Indeed, we have the third largest re-insurance industry in the world after New York and London."

The Ministry's E-commerce advisor Nigel Hickson also spoke at the conference on the recent introduction of Bermuda's Certification Service Provider (CSP) Authorisation Scheme.

The CSP Scheme was reported as "firmly placing Bermuda in the frame as far as cryptography and electronic signatures are concerned". Mr. Hickson said CSP legislation was based both on existing European electronic signatures legislation and "bolstered by what is happening in North America.