No change in RBI's stance on cryptocurrency, says Deputy Governor Sankar
This story was originally published at 18:06 IST on 30 October 2025
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--RBI Sankar: Cryptocurrency pose risk to sovereign currencies
--RBI Sankar: Cryptocurrencies have no value
--RBI Sankar: Stablecoin is asset but can pose risk to economy
MUMBAI – There has been no change in the Reserve Bank of India's stance on cryptocurrency, Deputy Governor T. Rabi Sankar reiterated Thursday. The statement comes in the backdrop of the US allowing banks and financial institutions to issue dollar-backed Stablecoin, a cryptocurrency.
"Our analysis is that cryptocurrencies do not serve any purpose that existing forms of money cannot do better," Sankar said at Business Standard's BFSI Insight Summit. "We feel that unbacked cryptos have no underlying cash-flows, have no issuer, and therefore they are nobody's liability, and therefore, they have no value," Sankar said.
"As far as Stablecoin is concerned, because they are backed, its value is not in question," Sankar said. But Stablecoin carries a huge risk of replacing a country's, particularly that which has an emerging economy like India, currency and policy sovereignty, Sankar added.
Sankar said Stablecoins do not serve any purpose that cannot be done better with India's Central Bank Digital Currency. "Introducing Stablecoin would pretty much create a lot of policy concerns and issues that are best avoided," Sankar said.
The Indian government and the RBI deem cryptocurrency as virtual digital assets and levies a 30% tax on cryptocurrency gains. Cryptocurrency transactions in India are also subject to 1% tax deduction at source. End
Reported by Krity Ambey and Sagar Sen
Edited by Akul Nishant Akhoury
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