Narendra Modi was on a forum hosted by Australian strategic policy institute where he was quoted issuing a warning for young crypto users in India, and number which is rising day by day.
This was his first ever public comment on the online digital cryptocurrencies. The current prime minister of India Narendra Modi, Thursday warned that the online cryptocurrencies such as Bitcoin presents a risk to younger generation as Narendra Modi’s government prepared to introduce legislation to regulate digital currency.
The government had their concern for many months on cryptocurrencies now as the number of users in India who are now involved in the online trading of cryptocurrencies have been rising steadily as India moves towards the digital generation.
There were many views about whether to continue the cryptocurrency in India or outright ban them, the government have taken their time and have not yet made a decision on it, making the crypto market unregulated in India.
Many crypto users feared that the government would outright ban the the digital platforms which aid in the trading of cryptocurrencies, just like the Indian government have banned 14000 online accounts on trading platforms such as Wazir X and coin DCX.
But as days goes by, it looks like the decision to regulate the cryptocurrencies instead of banning them is the most likely decision that the government will continue with as they go ahead to give a definitive decision on the matter.
Speaking at the city dialogue, PM Modi talked about virtual money which is highly popular in India and exists on state and Central Bank control, as a domain that needs to be closely watched over.
Cryptocurrency or Bitcoin for example, it is important that all democratic nation work together on this and ensure it does not end up in the wrong hands, which can spoil our youthsPM Modi on cryptocurrency
Earlier there were reports that the government could ban the use of cryptocurrencies for transaction and making payments, but would allow them to be held like assets, like gold, shares or bonds.
India did outlaw the crypto transaction in 2018 but the country’s top court strike down on the ban two years later, which resulted in a huge boom of the country’s younger population and all the celebrities to get involved in this much lucrative market.
The top Bank reserve Bank of India has been vastly critical saying that the cryptocurrencies are serious threat to the financial system if not properly regulated. But at the same time the central bank is looking at issuing its own digital currency.