Prime Minister Narendra Modi’s Twitter account was hacked in the early hours of Sunday. Several users shared the screenshots of the hacked Twitter account claiming that “India officially adopted bitcoin as legal tender.” The now deleted tweet read: “India has officially adopted bitcoin as legal tender. The government has officially purchased 500 BTC and is distributing it to all residents of the country.” However, the account was later recovered and the Prime Minister’s Office said the tweets should be ignored.
The claim made via the Prime Minister’s Twitter personal identifier is emblematic of exactly what many believe makes cryptocurrencies, as they currently are, so unreliable: false and exaggerated promises and a susceptibility to volatility that is undesirable. on the coins. The cryptocurrency debate in India has gained momentum recently. The Center had stated that it had not made any decision on banning cryptocurrency ads, but still expressed that the digital token market is a ‘risk area’. This was mentioned in the Rajya Sabha by the Union Finance Minister Nirmala Sitharaman. The government has also claimed that various cryptocurrency-related scams are being investigated.
“This is a risk area and it is not in a full regulatory framework. No decision was made on banning its ads. Steps to raise awareness are taken through RBI and SEBI,” Sitharaman said.
Sitharaman added that the guidelines of the Advertising Standards Council of India are being studied and its regulations are also being analyzed in the context of advertisements running on cryptocurrency exchanges. He said the regulation is being revised “so that we can take, if necessary, some kind of position or a decision to see how we can handle it.”
Center Discards Ban on Cryptocurrencies; to soon present a regulatory bill
The finance minister added that the Center will present the 2021 bill on cryptocurrencies and regulation of the official digital currency at the current winter session of Parliament. The bill aims to introduce regulations on cryptocurrency transactions in India. The cryptocurrency bill has been included in the Lok Sabha Bulletin, Part II, as part of the government’s plan to raise it during the current winter session. It will create an enabling framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI). Furthermore, the finance minister reported that the RBI is also working out a phased implementation strategy for the introduction of the central bank digital currency (CBDC).
“The introduction of CBDC has the potential to provide significant benefits, such as less dependence on cash, increased seigniorage due to lower transaction costs, lower risk of settlement. The introduction of CBDC would possibly also lead to an Option of payments based on Tenders. There are also associated risks that must be carefully weighed against the potential benefits, “said Sitharaman. At the same time, the Center clarified that CBDC will not have volatility associated with private cryptocurrencies as it will be backed by the RBI.
Prime Minister Narendra Modi also chaired a meeting and spoke on the subject of non-transparent misleading advertising related to cryptocurrencies. The meeting was held after a consultative process conducted by the Reserve Bank of India (RBI), the Ministry of Finance and the Ministry of the Interior. While they stated that cryptocurrency markets cannot be allowed to become avenues for money laundering and terrorist financing, sources indicated that the Center will continue to engage with all stakeholders.
“(Global collaboration between countries) must also recognize national rights and, at the same time, promote trade, investment and the public good in general. Take cryptocurrencies or bitcoins, for example. It is important that all democratic nations work together on this and make sure this doesn’t end up in the wrong hands, which can spoil our youth. “
On Friday, Prime Minister Narendra Modi stressed the joint configuration of global norms for emerging technologies such as social media and cryptocurrencies to be used to empower democracy, not to undermine it. He was on his way virtually to the ‘Summit for Democracy’ hosted by US President Joe Biden. He noted that the meeting provides a timely platform to promote cooperation between democracies.
“There is much we can learn from each other. We all need to constantly improve our democratic systems and practices. And, we all need to continually improve inclusion, transparency, human dignity, responsive redress and decentralization of power,” he said.
“In this context, today’s assembly provides a timely platform to promote cooperation among democracies. India would be delighted to share its experience in holding free and fair elections and in improving transparency in all areas of the governance through innovative digital solutions. We must also jointly shape global standards for emerging technologies such as social media and cryptocurrencies so that they are used to empower democracy, not undermine it, “he added.
With inputs from agencies