Cryptocurrencies against India's sovereign interest: RBI officials

Reserve Bank of India (officials) have reiterated their views against cryptocurrencies stating that cryptos can cause dollarisation of Indian economy, which would be against India’s sovereign interest. Briefing the Parliamentary Standing Committee on Finance on cryptocurrencies, the officials explained that cryptocurrencies are dollar-denominated and are issued by foreign private entities which could lead to dollarisation. Cryptocurrencies have the potential to become a medium of exchange and replace the rupee in financial transactions both domestic and cross-border, thereby replacing a part of the Indian monetary system and undermine the RBI’s capacity to determine monetary policy, they added.