PM Modi urges collective global effort to deal with cryptocurrencies

WION Web Team
NEW DELHI Published: Jan 18, 2022, 11:38 PM(IST)

Indian Prime Minister Narendra Modi speaks at the World Economic Forum's online Davos Agenda 2022 summit Photograph:( ANI )

Story highlights

India has been mulling virtual currency-related regulations which were widely expected to be introduced in the winter session of the parliament in December before being shelved.

Prime Minister Narendra Modi stated on Monday that dealing with the difficulties posed by cryptocurrenices requires a worldwide commitment. 

"The kind of technology it is associated with, the decision taken by a single country will be insufficient to deal with its challenges. We have to have a similar mindset," Modi said at the World Economic Forum's virtual Davos Agenda conference.

India has been considering virtual currency-related rules, which were generally expected to be introduced in the parliament's winter session in December before being postponed.

New Delhi has already stated that it intends to outlaw most cryptocurrencies, a move that would follow China's recent steps to tighten its grip on the digital currency.

In addition, India's central bank has expressed "severe worries" about digital currencies, claiming that they could jeopardise financial stability. 

According to industry estimates, India has 15 million to 20 million cryptocurrency investors, with total crypto holdings of roughly 400 billion rupees ($5.39 billion).

Modi also stated that India is working on signing free trade deals with a number of countries.

India has declared the start of free trade negotiations with the United Kingdom, with the goal of reaching an agreement by the end of the year.

The prime minister also stated that now is the perfect moment to invest in India since the country is eager to establish itself as a more reliable partner in the global supply chain. 

(With inputs from agencies)

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