According to the Prime Minister of India, Narendra Modi, democratic nations should work together on the issue of cryptocurrencies.
Indian Prime Minister Narendra Modi issued a stern warning that Bitcoin poses a threat to younger generations, adopting a combative tone as his government prepares to propose regulatory laws for cryptocurrencies.
While speaking at an online cybersecurity symposium hosted by the Australian Institute for Strategic Policy, Prime Minister Modi described digital currencies in India that operate beyond the purview of government and the central bank as an area that requires constant oversight. The representative also stated that it is vital the parallel efforts with other nations about this situation.
Finbold points out that, like him, opponents of cryptocurrencies claim that they are essentially anonymous and unregulated, making them an ideal tool for drug traffickers, human smugglers, and money launderers. These reasons led to getting the regulations introduced in various countries and regions.
In 2018, India essentially prohibited cryptocurrency transactions, but the highest court reversed the restriction two years later. As a result, the industry experienced a resurgence, and the large and growing young population in the country responded to an ad campaign using Bollywood stars and cricket.
Popular Crypto in India
Cryptocurrencies are increasingly popular with Indian millennials nowadays, who prefer digital assets to traditional investment means like stock trading. Today, more than 100 million Indians have already adopted virtual currencies, putting the country behind the United States of America, Russia, and Nigeria in terms of users, according to a report that appeared last month from investment portal BrokerChooser.
Meanwhile, data from crypto exchanges indicates that investors in smaller cities are increasingly purchasing Bitcoin and other digital assets.
At the same time, more and more requests have been made for India to impose another ban. Still, Prime Minister Narendra Modi and his administration seem poised to deal with those requests and instead introduce regulations.
For his part, Shaktikanta Das, the governor of the Reserve Bank of India, keeps being critical about cryptocurrencies. He recently highlighted that he reiterates the serious concerns he has about crypto. At the same time, the central bank is considering establishing its official digital currency in the future.
Also, in a meeting this week between parliamentarians from that huge Asian nation and representatives of cryptocurrencies, he concluded that this industry must be regulated, removing the ban as an option on the table.
India and technology
At the same time, the central bank is considering issuing its official digital currency. More generally, Modi used his leadership to promote India as a global technology hub. Its “Digital India” scheme aims to modernize and harness technology in the subcontinent of 1.3 billion people.
Modi said emerging technologies like quantum computing offer a lot of opportunities. But, democracies must work together to invest together in research and development in the technology of the future.
The leader added that democracies also need to strengthen intelligence and operational cooperation in cybersecurity. Critics have accused Modi of leveraging technology to silence his opponents.
By: Jenson Nuñez
