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India Backs Crypto Tech, Eyes Caution on Coins
3 Oct
Summary
- India supports innovation in underlying crypto technologies.
- RBI cites monetary sovereignty and policy concerns for caution.
- CBDCs explored for cross-border payments, not domestic.
India is actively promoting the technological advancements behind crypto assets, such as distributed ledger technology and tokenisation, while maintaining a guarded stance on cryptocurrencies. RBI Governor Sanjay Malhotra stated this approach prioritizes innovation while addressing concerns over monetary sovereignty and policy.
He emphasized that while domestic payments are efficient, cross-border transactions pose a greater challenge, suggesting central bank digital currencies (CBDCs) as a potential solution.
Malhotra also commented on global economic trends, attributing rising bond yields and debt to increased government and private sector spending, partly driven by AI, and noted the RBI's monetary policy primarily considers domestic growth and inflation dynamics.
