The Reserve Bank of India continues to maintain a cautious position on private cryptocurrencies, even as it supports several technologies that underpin digital assets. RBI Governor Sanjay Malhotra said the central bank is particularly concerned about issues involving monetary sovereignty, monetary policy and capital flows.
Speaking at the Kautilya Economic Conclave in New Delhi on Saturday, October 3, Malhotra said technologies such as distributed ledger technology and tokenisation can be encouraged and used in financial applications. However, he said the RBI’s approach to cryptocurrencies themselves remains cautious.
Why the RBI Is Cautious About Crypto
According to Malhotra, one of the RBI’s concerns is the concept of the “singleness of money” and the possible impact of cryptocurrencies on monetary policy. He also highlighted the potential implications for capital flows, particularly in emerging market economies where restrictions on capital movement may be important.
The Governor said the RBI’s position is not aimed at rejecting the technology behind crypto assets. Instead, the central bank is looking at ways in which technologies such as distributed ledgers and tokenisation can be used while maintaining the stability and integrity of the financial system.
CBDCs Could Help With Cross-Border Payments
Malhotra said the major payment challenge that newer digital technologies can address is increasingly related to international transactions rather than domestic payments.
He noted that domestic payment systems in India and several other countries have become relatively fast, inexpensive and convenient. The bigger challenge lies in making cross-border payments more efficient, and he pointed to central bank digital currencies, or CBDCs, as one possible solution.
This places CBDCs in a different category from privately issued cryptocurrencies, with the RBI exploring digital financial technologies while remaining cautious about the risks associated with private crypto assets.
Financial Innovation Must Preserve Trust
In his broader remarks at the conclave, Malhotra also stressed that technological progress in finance should not come at the expense of trust and stability.
He highlighted artificial intelligence, tokenisation and newer forms of financial intermediation as technologies that could improve efficiency. At the same time, he said sustainable innovation depends on maintaining sound institutions, settlement finality, the singleness of money and financial integrity.
The Fifth Kautilya Economic Conclave is being held in New Delhi from October 3 to 5, 2026, bringing together policymakers, economists, financial experts and other participants to discuss issues including technology, finance, global economic changes and India’s economic priorities.
Disclaimer
This article is intended for general informational purposes and reflects statements and publicly reported information available as of October 3, 2026. Cryptocurrency and digital-finance policies can change, and the article should not be treated as financial, investment or regulatory advice. Readers should refer to official government and RBI communications for the latest information.