RBI remains cautious on crypto, backs underlying technology: Governor Malhotra
RBI Governor Sanjay Malhotra stated that India remains cautious regarding cryptocurrencies due to concerns over monetary sovereignty and policy. However, the central bank continues to support the development of underlying technologies like tokenization and distributed ledgers.
Why it matters
The RBI's stance is critical for the future of digital finance in India, as it balances the promotion of fintech innovation with the need to maintain macroeconomic stability.
India has maintained a cautious approach towards cryptocurrencies while promoting the underlying technologies, such as distributed ledger technology and tokenisation, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Saturday (October 3, 2026).
Mr. Malhotra said India supports innovation in the technologies underlying crypto assets, including distributed ledger and tokenisation, but remains cautious about cryptocurrencies, owing to concerns over monetary sovereignty, monetary policy and capital flows.
"So, our approach has been to promote the underlying technologies, and we are using some of these in the central bank and outside, in PPP [public-private partnership] mode. But insofar as crypto is concerned, it has been a cautious approach," he said at the Kautilya Economic Conclave.
Expressing concerns about cryptocurrencies, the RBI Governor said the issue was related to the "singleness of money" and their potential implications for monetary policy, particularly in emerging market economies, where capital flow restrictions are in place.
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