Rupam Jin

MUMBAI (Reuters). The Indian Prime Minister NarendraModi spoke out in support of cooperation across the globe’s democracies, urging them to “not end up in the incorrect hands”, while the government formulated new guidelines for digital currency.

Modi’s speech, delivered virtualy to Sydney Dialogue (a forum focusing on emerging, critical, and cybertechnologies), did not address these concerns.

However, authorities across India have warned of the risks posed by cryptocurrencies used in terrorist acts and organised crime as well the economic destabilizing risk.

Modi, after extolling all the benefits of cyber-age technology, makes a cautionary note about digital currencies.

Take cryptocurrency, Bitcoin for instance. This is why it’s important for all democracies to work together.

Modi said, “We must ensure that the right hands do not take it,”

According to the Economic Times, Indian officials are currently working on regulations. They will likely propose that cryptocurrencies be banned from being used for payments and transactions. However, investors can keep them as assets like gold and bonds, according to Wednesday’s report in The Economic Times.

Modi presided over a meeting on Saturday to discuss India’s approach to cryptocurrency. The Economic Times reported that Modi’s cabinet might receive draft regulations to be reviewed within two-three weeks.

China’s regulators banned cryptocurrency mining and transactions in September.

Bitcoin, which is now the largest cryptocurrency worldwide, has more than doubled in value from the beginning of the year to $60,000 level.

According to Chainalysis blockchain data platform, India’s digital currency markets were worth $6.6 Billion in May 2021 compared to $923 M in April 2020.