RBI Dismisses Bitcoin as Currency, But Liquidity Cycles May Align with BTC Rallies
The post RBI Dismisses Bitcoin as Currency, But Liquidity Cycles May Align with BTC Rallies appeared on BitcoinEthereumNews.com.
The Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar recently stated that Bitcoin lacks inherent value and functions more as a technological demonstration than a currency, while stablecoins fail to meet traditional money standards due to risks like price instability and monetary policy interference. RBI emphasizes sovereign currencies over cryptocurrencies for stability. Stablecoins face criticism for enabling illicit activities and evading capital controls. Bitcoin’s price movements correlate with RBI liquidity changes, highlighting market realities despite official dismissal. RBI’s stance on Bitcoin and stablecoins sparks debate in India. Learn why officials question their value and how crypto users counter with real-world benefits like cheaper remittances. Explore implications for India’s digital economy today. What did RBI say about Bitcoin? RBI on Bitcoin has drawn significant attention, with Deputy Governor T. Rabi Sankar clarifying that the cryptocurrency does not qualify as money. In a recent media event in Mumbai, he highlighted Bitcoin’s origins as a technological innovation rather than a viable currency, stressing that its value stems from speculation rather than intrinsic qualities. This perspective aligns with the RBI’s preference for state-backed currencies supported by institutions like the International Monetary Fund. Source: X Sankar’s remarks underscore the RBI’s ongoing concerns about cryptocurrencies in India, where regulatory caution has shaped the landscape since the 2018 banking ban was lifted in 2020 by the Supreme Court. The central bank views Bitcoin and similar assets as posing risks to financial stability, including potential disruptions to fiscal policy and banking systems. Despite global adoption growing, with over 20 million Indians holding crypto assets according to Chainalysis reports, the RBI prioritizes controlled digital innovations like the upcoming Central Bank Digital Currency (CBDC). How do stablecoins impact monetary stability? Stablecoins, pegged to fiat currencies like the US dollar, are seen by the RBI as inadequate substitutes for…
Filed under: News - @ December 14, 2025 1:29 am