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RBI Deputy Governor Dismisses Crypto as 'Code,' Warns Stablecoins Threaten Monetary Sovereignty

He signaled a cautious path via CBDC pilots, with a crypto trading ban still under consideration.

Overview

  • At a Mumbai address, T Rabi Sankar said cryptocurrencies lack intrinsic value, calling them neither money nor financial assets.
  • Sankar argued stablecoins “do not serve any purpose fiat money cannot,” rejecting claims of superior utility.
  • He warned that stablecoins risk currency substitution, weaken monetary policy transmission, complicate capital controls, and erode seigniorage.
  • Pointing to divergence from recent U.S. moves that boosted dollar‑pegged tokens past $300 billion in market value, he underscored India’s more guarded stance.
  • He said CBDCs are inherently superior, noting India’s retail and wholesale pilots have about seven million users, while crypto activity remains taxed and subject to AML registration.