Reserve Bank of India Governor reiterates concerns over cryptocurrency risks for emerging markets

Reserve Bank of India (RBI) Governor Shaktikanta Das has again warned that cryptocurrencies pose "huge risks," with particular concern for emerging market economies such as India. Speaking at a recent financial sector forum, he argued that a large-scale adoption of private crypto assets and stablecoins could undermine monetary policy transmission, facilitate capital flight, and threaten macroeconomic and financial stability in countries with less-developed financial systems and more volatile capital flows. His remarks continue a long-standing RBI stance that sees speculative crypto assets as offering no underlying value while importing significant volatility and policy risk into emerging markets. Das positioned the RBI’s critical view of private cryptocurrencies in contrast to its support for regulated digital public money, including the ongoing development and gradual rollout of India’s central bank digital currency (CBDC), the e-rupee. RBI officials have repeatedly argued that CBDCs and improvements to existing payment systems can deliver many of the efficiency and inclusion benefits that crypto proponents claim, without ceding monetary sovereignty to privately issued tokens or global stablecoins. The renewed warning aligns with India’s broader policy direction at international forums, where it has urged coordinated global regulation of crypto to limit spillover risks to emerging economies and preserve the ability of national authorities to manage capital flows, financial stability, and exchange rates.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• The governor of the Reserve Bank of India (#RBI) says ... (x.com)
• RBI and the Indian Crypto Industry by Gaurav Arora :: SSRN (papers.ssrn.com)
• RBI Governor Says Crypto and Stablecoins Pose “Huge Risk” To ... (tradingview.com)

Explore the topic

• Markets
• India