Policymakers in India say unregulated transactions in digital currencies could hurt macroeconomic and financial stability. After initially planning to ban cryptocurrencies, the Modi government is instead considering legislation to regulate their use.
“We must … jointly shape global norms for emerging technologies like social media and cryptocurrencies so that they are used to empower democracy, not to undermine it,” Modi told a virtual summit hosted by U.S. President Joe Biden.
There are an estimated 15 million to 20 million cryptocurrency investors in India, with total crypto holdings of around 400 billion Indian rupees ($5.29 billion), according to industry estimates. The government does not provide any official data. ($1 = 75.6380 Indian rupees)
(Reporting by Neha Arora and Devjyot Ghoshal; Editing by Sanjeev Miglani and Kevin Liffey)