India cautious on crypto, promotes tech, eyes CBDCs

6.8 Banking

Oct 3, 2026

India is cautious on cryptocurrencies due to monetary policy and capital flow concerns, but supports distributed ledger technology and tokenisation. CBDCs are being considered for cross-border payments.

India is taking a cautious approach to cryptocurrencies, focusing instead on advancing foundational technologies like distributed ledger technology and tokenisation. RBI Governor Sanjay Malhotra, speaking at the Kautilya Economic Conclave, emphasized that while India encourages innovation in these areas, some of which are already in use by the central bank and through public-private partnerships, the country remains wary of cryptocurrencies themselves. Malhotra cited concerns over monetary sovereignty, monetary policy, and capital flows as reasons for this careful stance. He clarified that domestic payments in India are already efficient, so the main challenges lie in cross-border payments. To address these challenges, Malhotra suggested that central bank digital currencies (CBDCs) could be explored as potential solutions. He also warned that cryptocurrencies might threaten the 'singleness of money' and could have significant implications for monetary policy, particularly in emerging markets with capital flow restrictions.