Prime Minister Narendra Modi said that emerging technologies such as cryptocurrencies should be use to empower democracy, not undermine it. Policymakers in India say unregulate transactions in digital currencies could hurt macroeconomic and financial stability.
After initially planning to ban cryptocurrencies, the government is instead considering legislation to regulate their use.
PM told a virtual summit hosted by US President Joe Biden Said :
There are an estimated 15 million to 20 million cryptocurrency investors in India, with total crypto holdings of approx. Rs. 40,000 crore, as per industry estimates.
The government does not provide any official data.
Duvvuri Subbarao, the former Reserve Bank of India (RBI) governor, express his concerns regarding cryptocurrencies.
Duvvuri Subbarao said that if legalised, cryptocurrencies can rob the central bank of its control on money supply and inflation management in the country. Subbarao shared his assessment while addressing a webinar organise by the National Stock Exchange (NSE) and New York University (NYU) Stern School of Business this week.
The developments come amid India’s plan of banning all private cryptocurrencies from operating in the country was list as an agenda to be discuss in the ongoing winter session of the Parliament last month.
The propose legislation also seeks to make those who infringe the law subject to be arrest without a warrant and being held without bail with being liable to pay hefty fines.
The bill will be present before the Indian parliament after it gets approvals from the Union Cabinet.
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