Narendra Modi, India's prime minister, has urged democratic countries to work together and design a comprehensive regulatory framework for cryptocurrencies.
Without it, the asset class can be used illegally and can even ruin younger generations, he added.
Regulations are necessary
In a recent appearance at the Sydney Dialogue, the Indian leader stressed the importance of implementing regulatory policies in the digital assets sector. He felt the process should include nations with democratic views such as India, Australia and others in the Indo-Pacific region and beyond. They must establish mutual cooperation and act together.
Modi's comments focused mainly on bitcoin. He assumed that many criminals would continue to use the primary cryptocurrency in their illicit activities without the necessary legislation. Furthermore, the lack of rules can also "spoil our younger class".
"We are in a historic moment of choosing whether all the wonderful powers of technology of our age will be instruments of cooperation or conflict," concluded the Indian Prime Minister in his speech.
The second most populous nation in the world is reportedly in the process of imposing such regulations by February 2022. The Indian government has even begun to consider treating cryptocurrencies as an asset class.
This represents a reversal as authorities had planned to impose a total ban on bitcoin and altcoins earlier this year. Furthermore, they wanted to pass a bill according to which the custody, mining and trading of cryptocurrencies would become a criminal act.
India could launch its CBDC next year
A Reuters coverage revealed that the Asian country's central bank digital currency could see the light in the first quarter of 2022. P. Vasudevan, Chief Manager of the Reserve Bank of India (RBI), said:
“I think somewhere it has been said that at least by the first quarter of next year a pilot project could be launched. So we are optimistic about this ".
Earlier this year, RBI Governor Shaktikanta Das raised hope that India could begin trials for its CBDC later this year.
However, Vasudevan said that designing such a financial product is not an easy task and there should be no rush to launch it:
“We are hard at work and looking into the various issues and nuances related to CBDC. It is not a simple thing to simply say that CBDC can become a habit from tomorrow onwards ”.
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