PM Modi On Cryptocurrency: India May Arrive With New Law

Indian Prime Minister, Narendra Modi, on 13.11.2021 chaired an important meeting on the issues of digital currency. PM Modi on cryptocurrency and related issues held a meeting after the governor of RBI (Reserve Bank of India) Shaktikanta Das portrayed his concern on digital currencies, cautioning the investors on the potential loopholes of this technology. Let us have a look at some of the cryptocurrency news today India. 

The Issues Raised By PM Modi On Cryptocurrency

Digital currencies and their widespread use in India is a very serious concern from a financial stability and micro economy point of view as asserted by das on last Wednesday.

The meeting of PM Modi on cryptocurrency was a comprehensive one and it also had discussions related to the ways to stop advertisements that mis-lead and over promise the young investors.

As per the sources, during the meeting, the issues of the unregulated crypto space were touched upon; they cannot be allowed to become ways for terror financing and money laundering. The government is aware of the idea that this is an emerging technology, hence the government is going to keep a close watch and will indulge in taking proactive steps, PM Modi on cryptocurrency said.

There was also an agreement during that meeting that the steps that were taken in this niche of digital currency and its related issue by the Indian government will be progressive and forward facing.

The government will continue to actively engage with experts and other stakeholders as per the sources and noting that since the issue spread across geographical borders, it was felt that it will also need collective strategies and global partnerships.

The meeting of PM Modi on cryptocurrency was the result of an advisory process as the Finance Ministry, RBI, Home Ministry had done a broad exercise on it and also consulted experts from across the nation and globe.

The fast paced evolutions in the crypto arena come at a time when the craze of the crypto stays high among Indian investors, mainly the retail ones.

After the Supreme Court in early March, 2020 canceled the Reserve Bank of India’s order, which efficiently lifted the ban on digital currency trading in the country, the craze in India has increased at a furious rate. So if you are wondering, is cryptocurrency in India legal? Yes, as of now it is not illegal. This is the latest cryptocurrency news India, Supreme Court. 

Following this on February 5, 2021, the central bank had introduced an internal panel to recommend a model of the CBDC (central bank’s digital currency) which will be the Indian cryptocurrency coins.

The RBI had declared its intention to release an official cryptocurrency, in the face of the expansion of digital currencies like Bitcoin and Bitcoin price on which the central bank has had many issues.

The union government, which has not yet legislated a law on digital currencies, is in discussion with industry experts.

After several segments of caution, the government might largely wish to set high limits on the trading of digital currencies in India for the larger public interest.

The Bottom Line

Private digital currencies have received fame in the past one decade or so. But, governments and regulators have been cynical about these cryptos and are nervous about the related risks. So in this context, there was a meeting by PM Modi on cryptocurrency and related issues where he stated about the harmful effects of the misleading advertisements and also the fluctuating nature of digital currency space. There shall be a new law on digital currency in India that will be presented in the winter parliament session this financial year.

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