PM Narendra Modi warns the young about danger of cryptocurrencies like Bitcoin

In a stern warning, PM Narendra Modi today said that youngsters must be kept away from cryptocurrencies like Bitcoin. PM Modi added that the danger is immediate and the world must come together to address the problem before it is too late. This message was applicable in particular to democracies where freedom is taken for granted and there is no institutional control over many things. Therefore, it was important that cryptocurrencies like Bitcoin are not allowed to get into the wrong hands as it can spoil the youth. PM Modi was delivering a keynote address at The Sydney Dialogue today via videoconferencing.

PM Modi said that it is essential for democracies to work together to create standards and norms on crypto. "It should recognise national rights and, at the same time, promote trade, investment and the larger public good," he said. "Take cryptocurrency or bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth," PM Modi added. 

These words of caution come even as cryptocurrencies like Bitcoin and Ethereum have fallen from record highs they achieved just days ago, causing billions of dollars of losses to investors, many of whom are young.  Recently, PM Modi had chaired a meeting on the way forward for cryptocurrencies in India and related issues. Concern was voiced at the unregulated nature of cryptocurrencies. It was reiterated that crypto cannot be allowed for money laundering and terror financing, government sources had said.

That meeting with PM Modi had come in the wake of a consultative process carried out by the Reserve Bank of India, the Union Finance Ministry, and the Ministry of Home Affairs (MHA).

Watch the Video on Twitter of PM Narendra Modi speaking about cryptocurrencies or Bitcoin below (go to 13:20 min):

The government had indicated that it strongly feels that attempt was being deliberately made to mislead the youth by over-promising the profit potential of cryptocurrencies. Also highlighted was the fact that the advertising was non-transparent and should be stopped. 

Sources had  also revealed that the government knows it is an evolving technology and hence it will keep a close watch and not hesitate to take proactive steps. Having said that, it was also revealed that there was a consensus that whatever action the Government takes, it will be progressive and forward-looking.