Cryptocurrency: Cryptocurrency isn’t really a currency or a financial asset; it’s just a piece of code. This firm viewpoint on cryptocurrency comes from T. Rabi Shankar, the Deputy Governor of the Reserve Bank of India (RBI). He points out that cryptocurrency lacks intrinsic value. During an event, Rabi Shankar mentioned that cryptocurrency doesn’t have the fundamental qualities of money. It’s not backed by any issuer’s guarantee, nor is there any promise of payment. Its value is solely driven by speculation.
Do cryptocurrencies have any characteristics similar to currency?
The RBI Deputy Governor explained that traditional currencies or bank deposits are grounded in the promise of a reliable issuer and have the credibility to back them up. In contrast, cryptocurrencies do not have these traits. The assertion that cryptocurrencies redefine money is simply false.
Is trading in crypto worth it?
Rabi Shankar expressed his thoughts on crypto trading and real-money gaming. He remarked that cryptocurrencies without backing are essentially gambling based on mathematical speculation. He contended that crypto traders are merely wagering on price changes influenced by events or news.
What’s the situation with cryptocurrency in India?
In India, cryptocurrency trading or transactions aren’t entirely banned or illegal, but they do face heavy taxation. The RBI has always taken a cautious approach to crypto and has pointed out its associated risks. It’s important to note that in August 2025, the Government of India prohibited all real-money gaming apps under the Online Gaming Promotion and Regulation Act, 2025, with the ban taking effect from October 1, 2025.