Prime Minister Narendra Modi Urges Countries to Cooperate to Make Cryptocurrencies Safe

Modi said, “It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth.”

By Reuters | Updated: 18 November 2021 12:00 IST

Prime Minister Narendra Modi Urges Countries to Cooperate to Make Cryptocurrencies Safe

PM Modi chaired a meeting to discuss India's approach to cryptocurrencies on Saturday

Highlights

PM Narendra Modi sound a note of caution regarding digital currencies
Indian officials currently drafting regulations are likely to propose ban
In September, regulators in China banned all cryptocurrency transactions

Indian Prime Minister Narendra Modi urged cooperation between the world's democracies to ensure cryptocurrencies like Bitcoin do not "end up in the wrong hands", delivering the comments while his government drew up new rules for digital currencies.

PM Modi did not elaborate on those fears in his speech delivered virtually to the Sydney Dialogue, a forum focused on emerging, critical, and cyber technologies.

But authorities in India and elsewhere have flagged the dangers of cryptocurrencies being used by terrorist groups and organised crime, and the destabilising risk they posed to national economies.

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After extolling the opportunities presented by cyber age technology, PM Modi sound a note of caution regarding digital currencies.

"Take cryptocurrency or Bitcoin, for example. It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth," PM Modi said. Bitcoin price in India stood at Rs. 48.8 lakh as of 11:30am IST on November 18.

Indian officials currently drafting regulations are likely to propose a ban on all transactions and payments in cryptocurrencies, while letting investors hold them as assets like gold, bonds, and stocks, the Economic Times newspaper reported on Wednesday.

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PM Modi chaired a meeting to discuss India's approach to cryptocurrencies on Saturday, and the Economic Times said his cabinet could receive the draft regulations for review within two to three weeks.

In September, regulators in China banned all cryptocurrency transactions and mining of cryptocurrency.

Bitcoin, the world's biggest cryptocurrency, is hovering around the $60,000 (roughly Rs. 44.5 lakh) -level, having more than doubled its value since the start of this year.

India's digital currency market was worth $6.6 billion (roughly Rs. 48,920 crore) in May 2021, compared with $923 million (roughly Rs. 6,840 crore) in April 2020, according to blockchain data platform Chainalysis.

© Thomson Reuters 2021

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