India is at a very important juncture with respect to the recent crypto situation. Recent reports confirm the government has not banned crypto as an asset but prohibits its use as a medium of exchange, i.e. currency. On the other hand, the Reserve bank of India is working jointly with Singapore and Peru in developing CBDCs. Prime Minister Narendra Modi had previously chided crypto exchanges for aggressive advertisement, but now he is talking about democratic countries coming together to working in crypto at a Sydney Dialogue. Tweeting about the same, the Prime minister said that cryptocurrency can be a big problem for the youth if it goes to the wrong hands.
India’s stance on cryptocurrency is still not very clear. While many government officials including the Prime Minister appear to be largely unaware and apprehensive of crypto, the country has a great potential for the market. Subsequently, the government can earn huge revenues from taxation. While Narendra Modi addressed the Sydney Dialogue, the topic of cryptocurrency was brought up with the connection to financial crimes and money laundering. It shows that the criminal side of cryptocurrencies outshines and outweighs its merits for the governmental bodies. If Inda goes on to ban crypto in the future, it would be a huge disaster for the cryptocurrency exchanges that have grown tremendously. However, neither the Prime Minister nor any officials mentioned anything about a potential ban on crypto yet. How things play out will be of global importance.