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RBI Governor Cautions on Crypto: India Adopts Cautious Approach Amid Innovation Push
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News18•03-10-2026, 16:18
RBI Governor Cautions on Crypto: India Adopts Cautious Approach Amid Innovation Push
- •RBI Governor Sanjay Malhotra stated India is taking a cautious approach to cryptocurrency due to concerns over sovereignty, monetary policy, and capital flow.
- •India supports innovation in crypto-related technologies like Distributed Ledger Technology (DLT) and token systems, promoting their use internally and externally.
- •Concerns about cryptocurrency include its impact on the "uniformity of currency" and monetary policy, especially in emerging economies with capital flow restrictions.
- •The primary challenge is cross-border payments, not domestic ones, with CBDC and other options being considered.
- •Rising global public debt and bond yields are driven by increased government and private sector spending, including AI-related investments, leading to higher borrowing and debt.
Key Questions Answered
RBI Governor Sanjay Malhotra stated that India maintains a cautious stance on cryptocurrency due to serious concerns regarding national sovereignty, monetary policy, uniform currency value, and capital flow risks in emerging economies.
While being cautious about cryptocurrencies, India actively supports and promotes foundational technologies like Distributed Ledger Technology (DLT) and secure token systems, using some of them within the central bank and in public-private partnerships.
The RBI Governor noted that domestic payments have become fast and convenient, making cross-border payments the bigger current challenge, for which alternatives like Central Bank Digital Currency (CBDC) can be considered.
