An official from the RBI asserts that cryptocurrencies lack intrinsic value.

A central bank official stated that cryptocurrencies cannot be classified as "currencies" due to their lack of underlying value.

The Reserve Bank of India (RBI) has expressed concerns regarding modern currencies such as bitcoins, highlighting their potential systemic risks to financial systems.

During a panel discussion organized by IIM-Kozhikode, P. Vasudevan, an executive director at the RBI, emphasized, "Cryptocurrencies cannot be considered currencies as they lack intrinsic value."

The official further noted that the government must make decisions on how to address cryptocurrencies.

Currently, bitcoins lack legal recognition in India, and investors are subject to taxes on their trading income.

In light of recent actions against Paytm Payments Bank and restrictions imposed on certain international card providers, Vasudevan suggested that self-regulation could better safeguard the fintech sector. He also proposed exploring mechanisms to address unethical practices.