RBI Maintains Cautious Stance on Crypto, Backs Blockchain Technology

Reserve Bank of India Governor Sanjay Malhotra reiterated on Saturday that India maintains a cautious approach towards cryptocurrencies while encouraging development of underlying technologies. Speaking at the Kautilya Economic Conclave, Malhotra said the RBI and public-private partnerships are already exploring distributed ledger technology and tokenisation.

Malhotra flagged concerns that cryptocurrencies pose risks to monetary sovereignty, monetary policy, and capital flows—particularly for emerging economies. He noted that domestic payments in India are already fast, inexpensive, and convenient, making crypto unnecessary for that purpose.

The RBI Governor suggested central bank digital currencies (CBDCs) as an alternative solution for cross-border payments. India's cautious crypto stance thus coexists with efforts to develop technologies that strengthen financial systems without creating similar monetary and financial risks.