Indian Prime Minister Narendra Modi urged cooperation between the world’s democracies to ensure cryptocurrencies like Bitcoin do not “end up in the wrong hands”, delivering the comments while his government drew up new rules for digital currencies.
Modi did not elaborate on those fears in his speech delivered virtually to the Sydney Dialogue, a forum focused on emerging, critical and cyber technologies.
But authorities in India and elsewhere have flagged the dangers of cryptocurrencies being used by terrorist groups and organised crime, and the destabilising risk they posed to national economies.
After extolling the opportunities presented by cyber age technology, Modi sounded a note of caution regarding digital currencies.
“Take cryptocurrency or Bitcoin. It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth,” Modi said.
Modi added that democracies must invest together in the research and development of future technology, create a trusted manufacturing base and supply chains and work to prevent manipulation of public opinions.
Modi’s comments came in the midst of growing global concerns over China’s use of new-age technologies to advance its strategic agenda.
He said the biggest strength of democracy is its openness and a few vested interests should not be allowed to misuse it, noting that the digital age has redefined politics, economies and societies besides raising new questions on sovereignty, governance, ethics, rights and security.
Indian officials currently drafting regulations are likely to propose a ban on all transactions and payments in cryptocurrencies, while letting investors hold them as assets like gold, bonds and stocks, news reports said on Wednesday.
Modi chaired a meeting to discuss India’s approach to cryptocurrencies on Saturday, and news reports had said his cabinet could receive the draft regulations for review within two to three weeks.
In September, regulators in China banned all cryptocurrency transactions and mining of cryptocurrency.
Bitcoin, the world’s biggest cryptocurrency, is hovering around the $60,000-level, having more than doubled its value since the start of this year.
India’s digital currency market was worth $6.6 billion in May 2021, compared with $923 million in April 2020, according to blockchain data platform Chainalysis.
Modi said India is investing in developing indigenous capabilities in diverse areas, including in 5G and 6G for the telecom sector.
“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, coercion or choice, domination or development, oppression or opportunity,” Modi said.
