SYDNEY
\nIndian Prime Minister Narendra Modi on Thursday warned that bitcoin presents a risk to younger generations, sounding a hawkish tone as his government prepares to introduce legislation to regulate cryptocurrencies.
\nSpeaking at an online cybersecurity forum, Modi framed virtual money \u2014 which is highly popular in India and exists beyond state and central bank control \u2014 as a domain that needs to be closely policed.
\n\u201cTake cryptocurrency or bitcoin, for example,\u201d he told a forum hosted by the Australian Strategic Policy Institute. \u201cIt 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.\u201d
\nCritics of cryptocurrencies allege that largely anonymous unregulated transfers make them a perfect tool for drug traffickers, people smugglers or money laundering.
\nThat led to a boom in the sector as the country\u2019s vast young population took heed of an advertising blitz by Bollywood and cricket stars.
\nSeveral countries have begun to legislate to introduce oversight over cryptocurrencies, and exchanges in many jurisdictions are now subject to the same regulations as other financial service providers. India effectively outlawed crypto transactions in 2018, only for the country\u2019s top court to strike down the ban two years later.
\nToday, more than 100 million Indians have embraced virtual currencies, ranking the country behind only the United States, Russia and Nigeria in terms of users, according to a report last month by investment portal BrokerChooser.
\nThere have been growing calls for India to issue another ban, but Modi\u2019s government appears set to stop short, preferring instead strict legislation that could be passed before the end of the year.
\nReserve Bank of India chief Shaktikanta Das has been sharply critical, saying last week that cryptocurrencies are a serious threat to the financial system if not properly regulated. At the same time the central bank is looking at issuing its own official digital currency.
\nMore broadly, Modi used his address to tout India as a global technology hub. His \u201cDigital India\u201d scheme aims to modernise and harness technology across the subcontinent of 1.3 billion people.<\/p>\n","protected":false},"excerpt":{"rendered":"
SYDNEY Indian Prime Minister Narendra Modi on Thursday warned that bitcoin presents a risk to younger generations, sounding a hawkish tone as his government prepares to introduce legislation to regulate cryptocurrencies. Speaking at an online cybersecurity forum, Modi framed virtual money \u2014 which is highly popular in India and exists beyond state and central bank […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-228405","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-world"},"yoast_head":"\n