Prime Minister Narendra Modi stressed on Friday that emerging technologies, such as cryptocurrencies, should be used to improve rather than damage democracy. Minister Narendra Modi stated that new technology such as cryptocurrency should be leveraged to strengthen democracy rather than to weaken it.
Unregulated digital currency transactions, according to Indian policymakers, might jeopardize macroeconomic and financial stability. Instead of banning cryptocurrencies, the Modi administration is drafting laws to restrict their usage.
“We need to work together to define global rules for new technologies like social media and cryptocurrencies so that they are utilised to enhance democracy rather than harm it,” Modi said at a virtual conference sponsored by US Vice President Joe Biden.
Industry estimates put the number of cryptocurrency investors in India at 15 million to 20 million, with a total crypto asset value of around Rs. 40,000 crore.
Former Reserve Bank of India (RBI) governor Duvvuri Subbarao has stated his reservations about cryptocurrency. Cryptocurrencies, according to Subbarao, might deprive the central bank of authority over the country’s money supply and inflation management if they are legalized. Subbarao made his opinion at a webinar hosted by the National Stock Exchange (NSE) and the Stern School of Business at New York University (NYU) this week.
The news comes as India’s intention to prohibit any private cryptocurrencies from functioning in the nation was put on the agenda of the Parliament’s ongoing winter session last month.
In addition, the new legislation intends to make people who break the law susceptible to being arrested without a warrant, imprisoned without bail, and subject to severe fines.
After receiving approval from the Union Cabinet, the measure will be presented to the Indian parliament.