In a decisive address at the annual BFSI Summit in Mumbai, Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar reiterated the central bank’s scepticism about private cryptocurrencies while laying out a calibrated strategy for the country’s Central Bank Digital Currency (CBDC).
Sankar insisted that the RBI will not rush into a full-scale launch of the digital rupee, indicating that India is technologically and operationally prepared but still cautious about a broader rollout.
“Many countries are experimenting with CBDC. We do not want to rush or launch it full scale because everyone globally is just starting off. The use cases are still very different and limited,” he said. He emphasized that central banks worldwide are observing the macro-economic and policy implications of CBDCs and that India is focused on “calibration over speed.”
On the issue of private cryptocurrencies, Sankar delivered a blunt verdict: unbacked tokens “have no underlying cash flow, no issuer, therefore no value,” and cannot be treated as financial assets.
He categorised them as serving “no purpose that existing forms of money cannot do better.”
He also flagged stablecoins as a major concern, stating they carried “a huge risk of replacing your currency and policy sovereignty,” particularly in emerging economies.
Turning to the CBDC, Sankar identified cross-border payments as a prime application.
He pointed out that the current settlement time of “four to five days” and transaction costs of “five to six per cent” in cross-border transfers could be reduced by appropriately designed central-bank money. “In the cross-border space … we believe CBDC is the answer,” he said. He also drew a strategic parallel between CBDC development and the internationalisation of the rupee, asserting that both are long-term goals that must be executed patiently. “We want to be a developed country in a very short time. Can you imagine a developed country when your currency is not commonly acceptable for global cross-border trades? We have to build those things now,” he observed.
The remarks reaffirm the RBI’s long-held stance on digital assets. The bank has consistently cautioned that cryptocurrencies pose macro-financial risks, especially for emerging markets lacking strong governance frameworks.
Meanwhile, the Indian government continues to assess how best to regulate the sector; a recent document indicated India is leaning away from full-scale regulation of cryptocurrencies, citing difficulty in containing associated risks.
On CBDC progress, the RBI’s retail and wholesale pilots — including the e₹-W and e₹-R launched in late 2022 — are progressing, though Sankar emphasized that scale and wider adoption remain subject to careful testing and feedback.
The RBI’s approach signals a willingness to innovate in digital currency, but within a framework prioritising monetary policy integrity, financial stability, and sovereignty.
As India charts its course, Sankar’s message is clear: the digital-rupee journey will advance step by step, but private cryptocurrencies remain firmly beyond the RBI’s comfort zone.
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