Indian Prime Minister Narendra Modi said that a collective and harmonized global action is needed to deal with the problems posed by cryptocurrenices.
While speaking at the World Economic Forum’s virtual Davos Agenda conference, Modi said, “today with change in global order, the challenges we face are also increasing. To fight these challenges, every country and every international organisation needs to take collective and synchronised action. Supply chain disruption, inflation and climate change are such examples,” Modi said. “Another example is cryptocurrency. The kind of technology that is linked to it, steps taken by one country will be insufficient to face such challenges. We have to take one view on it.”
Modi also raised his concern regarding the incapability of global organisations such as the, International Monetary Fund in managing this potent financial crisis. He said, “Looking at the global scenario, the question is whether multilateral organisations in the new world order are ready and capable to tackle such challenges. When these organisations were established, the circumstances were different. Today, the situation is different. That’s why it is the responsibility of all democratic countries to emphasise reform of such institutions so that they can be readied to face today’s and tomorrow’s challenges.”
India has been pondering about virtual currency-related regulations from quite sometime, which was apparently to be introduced in the winter session of the parliament in December before considering it to be be taken forward, or vice versa. As per the legislation proposed, there would be a blanket ban on cryptocurrencies as a payment method in India and it would also put people or crypto enthusiasts who do not abide by the law to be arrested without warrant and held without a bail.
Delhi had already raised its red flag to ban most cryptocurrencies, following the recent moves by China that intensified its crackdown on cryptocurrencies. India’s central bank has also voiced “serious concerns” around digital currencies saying that they may impact financial stability.
There are an estimated 15 million to 20 million cryptocurrency investors in India, with total crypto holdings of around 400 billion rupees ($5.39 billion) according to industry estimates.
India is also working on signing free trade agreements with many countries, Modi added.
The prime minister also said that it was the best time to invest in India because the country was willing to become a more trusted partner in global supply chain.