According to U.Today, India’s central bank has reiterated its skepticism toward cryptocurrencies. The statement comes after ongoing discussions about the regulatory framework for digital assets.
In the latest public comment, the central bank expressed continued caution regarding cryptocurrencies, emphasizing concerns related to price volatility, use in illicit activities, and challenges to financial stability. At the same time, the institution indicated support for the development of tokenization initiatives that adhere to existing regulatory standards.
Tokenization—the process of converting rights to an asset into digital tokens on a secure ledger—was highlighted as a potential tool for improving efficiency in areas such as securities settlement and real estate documentation. The central bank noted that tokenized assets, when implemented within regulated boundaries, could offer benefits including reduced transaction times and lower intermediary costs.
The central bank did not specify timelines for tokenization rollout or outline technical requirements. It also did not mention particular projects or partnerships related to tokenization at this stage. Its position remains focused on prudential oversight: allowing innovation while managing risks associated with decentralized or unregulated digital assets.
