RBI Governor Malhotra Cautions on Cryptos, Backs Blockchain Development

Reserve Bank of India Governor Sanjay Malhotra has reiterated the country's cautious stance on cryptocurrencies, while expressing support for blockchain technology and its applications. Speaking at the Kautilya Economic Conclave, Malhotra emphasized that India is focused on exploring the benefits of distributed ledger technology and tokenization.

The RBI chief highlighted that cryptocurrencies raise concerns related to monetary sovereignty, monetary policy, and capital flows, particularly for emerging economies. He noted that the primary problem with cryptocurrencies is not domestic payments, but rather cross-border transactions.

Malhotra also touched on the global bond yields, attributing the increase in public debt and rising bond yields to demand and supply conditions, as well as increased spending linked to artificial intelligence (AI). The RBI Governor emphasized that the central bank's monetary policy remains focused on India's domestic growth and inflation conditions.

Malhotra stated that the RBI needs to remain attentive to international interest-rate movements while framing monetary policy for domestic economic conditions. This suggests that the RBI is taking a cautious approach to managing the country's economy in light of global developments.