India’s PM calls on democratic countries to cooperate on crypto

18 Nov 2021

Prime Minister of India Narendra Modi has called for democratic countries to work together to make the most of cryptocurrencies and blockchain technology. 

The PM has become increasingly vocal about digital currencies, as India adopts a more progressive stance on Bitcoin – the world’s largest cryptocurrency by market capitalisation. 

During the Sydney Dialogue, there were indications that robust regulatory measures were looming, reports Cointelegraph.

India’s government has previously taken steps to set up a regulatory infrastructure for the burgeoning crypto sector. Several high-level talks have taken place, including with the Reserve Bank of India, Finance Ministry, and Home Ministry, as well as numerous cryptocurrency experts and industry participants from within and outside the country.

However, despite the objective stance taken by several government ministers, central bank governor Shaktikanta Das, said on Tuesday that permitting crypto trading could threaten any financial system as they are not overseen by central banks.

Despite the increasing popularity of digital currencies in India, there are still divisions among lawmakers over the need for an extensive regulatory system. A Bitcoin bill is due to be delivered to the Indian legislature during the next session. Many are hopeful this will provide investors and businesses with more clarity.

Via regulatory reclassification, India is planning to reduce the Goods and Services taxes on crypto exchanges to 1% from 18%. In addition, the president of the central bank of Peru, Julio Velarde, recently announced the country will join forces India and two other countries to establish its own CBDC (central bank digital currency). 

At the Annual Conference of Executives with business leaders in Lima on Tuesday, he said: “I think the payment system we are going to have eight years from now in the world is going to be completely different from the current one… Even the financial system will probably be quite different.”