Indian PM Calls for Common Global Stand on Cryptocurrencies

Indian Prime Minister Narendra Modi called for a united global stand to deal with challenges arising from the increasing adoption of cryptocurrencies.

Need for a Common Global Approach

Speaking virtually at the World Economic Forum’s Davos Agenda 2022 on Monday, the PM talked about a range of issues, including a need for a common global approach to cryptocurrencies.

“The kind of technology that is associated with it, the decisions taken by a single country will be insufficient to deal with its challenges. We have to have a similar mindset,” he said at the WEF summit.

Of late, cryptocurrency trading has gained traction in India even though there is a complete lack of regulations for the industry and laws to protect investors. The government’s plan to bring a bill ran into rough weather due to highly divergent viewpoints of stakeholders – financial sector regulators and crypto industry representatives.

“Cryptocurrency is an example of the kind of challenges we are facing as a global family with a changing global order. To fight this, every nation, every global agency needs to have collective and synchronized action.”

Modi Government’s Dilemma on Crypto Bill

Despite listing the proposed crypto bill for discussion in parliament during the winter session in December 2022, the government could not actually bring it up because it was unable to take a stand on some crucial issues.

Although the authorities had not made public why they failed to produce the bill to parliament, sources claimed they had decided that they will seek international assistance in formulating a common strategy on the matter.

In line with this stand, the Indian government is believed to have approached the Bank of International Settlements (BIS) to help the country frame its regulations for the crypto sector.

Pointing to the inability of existing multilateral organizations to deal with new technologies and developments in the field of money and banking, Modi said, “When these institutions were formed, circumstances were different, and today they are different.”

Crypto a Recurring Theme in Modi’s Recent Speeches

In the past three months, the Indian Prime Minister has spoken about cryptocurrencies at world forums several times, but not even once to the domestic audiences in India.

In his speech at The Sydney Dialogue in November 2021, Modi cautioned that emerging technologies should be safeguarded from misuse. During an appearance at Democracy Summit hosted by US President Joe Biden in December 2022, he said new technologies should protect democracy, not undermine it.

He reiterated this stance during his WEF speech yesterday. “That’s why every democratic nation has the responsibility to bring about an emphasis towards reforms in these institutions to make them capable enough to deal with modern challenges in the future,” Modi said at the WEF’ Davos Agenda 2022.

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