India's Central Bank Remains Wary of Crypto While Backing Tokenization

What happened: The RBI issued another warning on separating crypto from its underlying technology, with Governor Sanjay Malhotra saying India's approach remains cautious on crypto while the central bank stays supportive of tokenization and distributed ledger technology. Why it matters: The RBI argues privately issued crypto could affect monetary sovereignty, monetary policy and capital flows, and says CBDCs and interconnected regulated payment systems are an alternative for cross-border payments.

The RBI issued another warning on separating crypto from its underlying technology, with Governor Sanjay Malhotra saying India's approach remains cautious on crypto while the central bank stays supportive of tokenization and distributed ledger technology.

The RBI argues privately issued crypto could affect monetary sovereignty, monetary policy and capital flows, and says CBDCs and interconnected regulated payment systems are an alternative for cross-border payments.