India Prime Minister, Narendra Modi, has called for international collaboration to address the difficulties presented by cryptocurrencies.
“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 said in a virtual speech at the World Economic Forum’s annual Davos conference in 2022.
Modi compared cryptocurrencies to supply-chain disruptions, inflation, and climate change, stating that “the kind of technology cryptocurrency is associated with makes decisions taken by one country inadequate to meet the challenges posed by cryptocurrency. We have to have common thinking.”
Even though the Indian government has not yet developed its legal framework for crypto assets, it has already chosen to look at other countries’ regulations and the evolution of global standards on cryptocurrency. The Bank for International Settlements (BIS) has been contacted by the Finance Ministry in order to help it draft laws for the BIS.
The proposed cryptocurrency legislation in the nation would most likely not become law until after the year’s Budget Session ends in April. According to reports, the law has changed from banning all private cryptocurrencies while allowing “for certain exceptions to promote the underlying technology” to authorizing cryptocurrencies to be used as an asset but forbidding its use as currency or payment.
When questioned if multilateral institutions are prepared to deal with the modern challenges, Modi responded affirmatively in his speech. “When these institutions were formed circumstances were different and today they are different.”
“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,” he said.
Modi, who is the leader of the world’s second-most populous country, concluded his speech by saying that new challenges necessitate new approaches, that every nation requires the support of other nations at a much greater level than in the past, and that he is confident that the discussions at the conference will yield results.
A virtual keynote presentation at the Sydney Dialogue, an annual meeting on new technologies, was delivered by Modi, who said democratic nations should collaborate to ensure that cryptocurrency “doesn’t end up in the wrong hands” and “spoil our youths.”