Reserve Bank of India (RBI) Governor Sanjay Malhotra said the central bank remains firmly in favour of promoting a Central Bank Digital Currency (CBDC) over “any form of cryptocurrency,” citing the latter’s potential risks to monetary policy, capital controls and financial integrity.

Malhotra said while cryptocurrencies and stablecoins have shown promise in asset tokenisation, they “fall short as the mainstay for monetary systems.”

“We believe in India it is the CBDC and not crypto, because [crypto] has huge implications for monetary policy, for controls on the capital account, and for money laundering,” Malhotra said.

“We would rather promote CBDC than any other form of crypto, because CBDC has all the advantages.”

The RBI chief highlighted that India’s domestic payments ecosystem is

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