'Cryptocurrency Is A Piece Of Code, Not A Currency': RBI Deputy Governor T Rabi Sankar

2025-12-12 06:09:01

(MENAFN- Live Mint) Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar on Friday said cryptocurrency is not really a currency because it does not have the basic features of money. He described it as 'just a piece of code,' which is not even a financial asset or any kind of asset at all.

Speaking at the Mint Annual BFSI Conclave 2025, Rabi Sankar explained why these tokens don't qualify as money.“Cryptocurrencies have no intrinsic value. They are not backed by a promise to pay, and they have no issuer. Their value is purely speculative,” he said.

Cryptocurrencies are digital or virtual currencies that run on decentralised blockchain networks rather than being issued or controlled by a central bank. In India, they remain unregulated, and while trading or transacting in them is neither banned nor illegal, such activity attracts heavy taxation.

Currency or deposits carry a promise from a trusted issuer, and money derives its credibility from the sovereign that backs its value. The fundamental challenge with cryptocurrencies is that they claim to redefine the very nature of money, yet represent no underlying value at all, Rabi Sankar said at the event.

(This is a developing story. Please check back for updates.)

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