RBI Warns Cryptocurrencies Could Destabilize Financial System

Reserve Bank of India (RBI) Governor Sanjay Malhotra has reiterated concerns over cryptocurrencies, warning that their proliferation could hamper financial stability and pose challenges to monetary policy.

Speaking at a press conference following the RBI Monetary Policy Committee (MPC) meeting, Malhotra emphasized that while a government committee is currently reviewing cryptocurrency regulations, the central bank remains cautious about their impact on the economy.

The warning comes amid the Supreme Court’s recent call for a clear-cut policy on cryptocurrency regulation, highlighting concerns over illicit Bitcoin trading and its resemblance to hawala transactions.

India is currently working on a discussion paper on crypto assets, with an inter-ministerial group comprising officials from RBI, SEBI, and the Finance Ministry studying global regulatory frameworks.