Cryptocurrencies Poses Serious Challenge To Country's Financial Stability: RBI Note The central bank also said that CBCDs are the next step in the evolutionary progression of sovereign currency

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shaktikanta Das Twitter handle

The Reserve Bank of India (RBI), in its concept note on central bank digital currency released on Friday, has said that private cryptocurrencies undermine India's financial and macroeconomic stability because of their negative consequences for the financial sector.

"Further, a wider proliferation of cryptocurrencies has the potential to diminish monetary authorities' power to determine and regulate monetary policy and the monetary system of the country, which could pose a serious challenge to the stability of the country's financial system," said RBI.

The central bank had always expressed its disagreement to the private cryptocurrencies and RBI governor Shaktikanta Das, on the 25th issue of RBI's financial stability report, had also stated that cyptocurrencies are a clear danger and anything that derives value based on make-believe, without any underlying value is just speculation under a sophisticated name.

"The inherent design of cryptocurrencies is more geared to bypass the established and regulated intermediation and control arrangements that play a crucial role of ensuring integrity and stability of the monetary and financial ecosystems," said the concept note.

It is also said that CBCDs are the next step in the evolutionary progression of sovereign currency. Central Bank Digital Currency (CBDC) is a digital form of currency notes issued by a central bank. The purpose behind the issue of this concept note is to create awareness about CBDCs in general and the planned features of the digital rupee, in particular. The note also seeks to explain Reserve Bank's approach towards introduction to the digital Rupee.

The Reserve Bank will soon commence limited pilot launches of e-Rupee for specific use cases. It is expected that this note would facilitate a deeper appreciation and understanding of digital Rupee and help members of public prepare for its use.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Marketing

7 Local SEO Strategies I've Used to Help Businesses Boost Their Revenue 10x — Especially Blue-Collar Companies

Discover actionable local SEO strategies for service-based businesses like pest control or auto glass repair. Boost visibility, reviews and leads with these tips.

Business Solutions

Business Owners are Cancelling Their OpenAI Membership for This Less Expensive Alternative

1min.AI gives you lifetime access to GPT-4o, Midjourney, Gemini, and more with no recurring costs.

Business News

Instagram Is Offering TikTok Creators Up to $50,000 Per Month For Exclusive Content

Leaked deals show that there are strict terms to receiving the money.

Leadership

How a Mindfulness Practice Can Help You Beat Tech Overwhelm

This article explores how mindfulness can transform your tech choices, ensuring technology serves your business goals without adding unnecessary complexity.

Employee Experience & Recruiting

If You Want to Hire Good Entry-Level Talent, Offer These 3 Game-Changing Opportunities

Finding and hiring good entry-level talent can be a daunting enterprise for small businesses. What can they do to stand out in a time of talent scarcity?