It is banned in some parts of the world.  However in recent years studies have indicated that talc can actually prevent diaper rash.  For now, your best option is to talk to your doctor to help you choose the safest product for your baby.  Baby powder products are sometimes made up of different ingredients, and women who work with talcum-based products should also do more research to ensure they are using a safe product.
assistant
There is scientific evidence to suggest that the inhalation of talcum powder may contribute to lung cancer in sensitive individuals, particularly women. It is for this reason that the Food and Drug Administration restricted the use of baby powder in 1992, and banned the use of talc in cosmetic products in the State of California. At present, no nationwide restrictions on the use of talc in cosmetic products in the US exist, but the FDA strongly discourages its use due to significant public health concerns, and regulates talc safety to minimize additional risks.
assistant
Is baby powder safe or is it carcinogenic?
user
Infants and young children should avoid contact with powder-based products such as baby powder, especially when possible. The use of talc in cosmetics for untested purposes was banned in 1992, following concerns that talc can cause cancer in women due to asbestos contamination of talc products. Talc does not cause cancer in infants and small children, though it can be harmful if swallowed or inhaled. Studies show that baby powder is not carcinogenic to infants, unless ingestion or inhalation occurs. To protect your children’s health, avoid the use of baby powder altogether and use alternative powder-free methods to prevent diaper rash.
assistant
If it could cause cancer, shouldn't it be banned?
user