On Thursday, November 18, 2021, 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 regulation laws for cryptocurrencies.
While speaking at an online cybersecurity symposium hosted by the Australian Strategic Policy Institute, Prime Minister Modi described digital currencies in India that operate beyond the purview of the government and central bank as an area that requires constant supervision.
Regarding cryptocurrencies and Bitcoin, he stated;
“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 youths.”
Those who oppose cryptocurrencies contend that they are essentially anonymous and unregulated make them an ideal tool for drug traffickers, human smugglers, and money launderers. The introduction of cryptocurrency governance has begun in several nations, and exchanges are now subject to the same rules as other financial service companies in a number of jurisdictions.
Crypto industry experiences resurgence in India
In 2018, India essentially barred cryptocurrency transactions, only for the country’s highest court to overturn the restriction two years later. As a result, the industry saw a resurgence as the country’s large and growing youthful population responded to an advertising campaign using Bollywood and cricket stars.
As we previously reported, cryptos are increasingly becoming more popular among Indian millennials as they prefer digital assets to traditional investment means like stock trading. Meanwhile, data from cryptocurrency exchanges indicates that investors from the smaller towns are increasingly purchasing Bitcoin and other digital assets.
Increasing requests have been made for India to impose another ban. Still, Prime Minister Narendra Modi’s administration looks prepared to defy the calls and instead introduce tough regulations that might be implemented by the end of the year.
Elsewhere, Shaktikanta Das, the Reserve Bank of India governor, has been outspoken in his criticism of cryptocurrencies, stating last week that they pose serious concerns to the financial system if they are not adequately regulated. At the same time, the central bank is considering establishing its own official digital currency in the future.