The Prime Minister of India, Narendra Modi, urged democratic countries to draft a comprehensive regulatory framework for cryptocurrencies. Without them, the asset class could be used illegally, and even the younger generation could be destroyed, according to the Prime Minister.
In a recent appearance at the Sydney Dialogue, the Indian Prime Minister emphasised the importance of implementing regulatory guidelines in the crypto industry. He believes the process should involve countries with a democratic vision such as India, Australia and other countries in the Indo-Pacific region and other regions.
Modi’s comments mainly focused on Bitcoin. He assumed that many criminals would continue to use large cryptocurrencies for their illegal activities without legislation. Above all, however, the lack of rules will “spoil our youth.”
“We are at a historic moment of choice whether all the wonderful powers of technology of our age will be instruments of cooperation or conflict,” India’s PM concluded in his speech.
According to reports, the world’s second-most populous country is expected to implement such regulations by February 2022. The Indian government has even started considering cryptocurrencies as an asset class.
This is a big turning point since the beginning of this year as the Indian government was planning to ban Bitcoin and altcoins. In addition, they hope to pass a law that will make the custody, mining, and trading of cryptocurrencies a criminal act.
India May Launch Its CBDC Next Year
A coverage by Reuters revealed that the central bank digital currency of the Asian country might see the light of day in the first quarter of 2022. P. Vasudevan, the Chief Manager at the Reserve Bank of India (RBI), said:
“I think somewhere, it was said that at least by the first quarter of next year, a pilot could be launched. So we are bullish on that.”
Earlier this year, Shaktikanta Das, the Governor of the RBI, raised hopes that India could begin trials for its CBDC by the end of the ongoing year. However, Vasudevan said that designing such a financial product is not an easy task, and there should be no hurry to launch it:
“We are on the job, and we are looking into the various issues and nuances related to CBDC. It’s not a simple thing to just say that CBDC can be a habit from tomorrow on.”