On Thursday, November 18, Prime Minister Narendra Modi said cryptocurrencies must not fall into the “wrong hands and spoil our youth”, urging all democratic nations to come together and ensure things like these do not happen.
Speaking at the Sydney Dialogue in a virtual keynote address, PM Modi said, “India’s industry and services sectors are undergoing massive digital transformation using technology for conversion of resources and protection of biodiversity.
This means that it won’t be recognised as a valid currency to settle transactions, but can be held as an asset like gold, share or bond.
“Our respected Prime Minister speaking about crypto and the need for regulation is a great thing for India.
According to the Economic Times report, the government is on the way to finalise a legislation on the matter, banning the use of crypto for payments, within two or three weeks.
“A complete ban on cryptocurrencies won’t be appropriate because the world is moving in this direction.
“The idea of CBDCs in principle is good and many countries are working towards it, but it’s also important to understand that even if CBDC comes in, it will have to co-exist with the private cryptocurrencies.
The Reserve Bank of India, on the other hand, has repeatedly warned against cryptocurrency, worrying that the macro-economic aspects and the financial stability of the country will be hampered if the coins are allowed to flow freely.
And CBDC can be a step towards that, but it’s quite early to say if Governments around the world have got it right.
The platforms trading with cryptocurrency may be classified as e-commerce platforms. The proposed Bill on cryptocurrency is expected to be tabled during the Winter session of the Parliament.