RBI Official Calls Cryptocurrency “Pure Gambling” as India Weighs Full Ban

A top Reserve Bank of India (RBI) official has issued a stark warning. Deputy Governor T Rabi Sankar labeled cryptocurrencies as “pure gambling” and “just a piece of code.” He made these remarks at the Mint Annual BFSI Conclave 2025. His comments signal a hardening stance from India’s central bank.The final decision on a crypto framework rests with the government. According to Reuters, the RBI’s firm position is a key part of ongoing deliberations. The official’s blunt assessment adds intense scrutiny to the digital asset sector in India.

Why the RBI Says Crypto is Not Real Money

Rabi Sankar fundamentally rejected the idea that cryptocurrencies are currency. He stated they lack the basic features of money. They have no intrinsic value and are not backed by any issuer’s promise to pay.Their value is purely speculative, he argued. This makes them fundamentally different from sovereign-backed currency or bank deposits. The deputy governor emphasized this point clearly.He also clarified they are not financial assets. Assets like stocks or bonds generate underlying cash flows. Cryptocurrencies like Bitcoin do not, according to the RBI’s view. This places them in a unique and risky category.

The Growing Pressure for a Regulatory Crackdown

The deputy governor’s comments carry significant weight. When asked about an outright ban, he confirmed it is “under consideration.” The RBI must gather views from stakeholders first. These include banks, crypto firms, and government bodies.This development follows India’s recent ban on real-money gaming apps. The parallel drawn to gambling is not coincidental. It suggests regulators see similar high-risk patterns in crypto trading.The policy direction appears to be moving toward stricter control. The central bank’s consistent warnings highlight deep concerns over financial stability and consumer protection. A final government decision is anticipated after thorough review.

Warner Bros. Acquisition Bidding War Puts Movie Theater Industry on Edge

The RBI’s forceful “pure gambling” critique underscores a pivotal moment for crypto regulation in India. The path forward now hinges on a government decision that could reshape the digital asset landscape.

Info at your fingertips

Q1: Is cryptocurrency banned in India now?

No, it is not currently banned. Trading and transacting in cryptocurrencies remains legal but heavily taxed. The final regulatory framework is still under government consideration.

Q2: What did the RBI Deputy Governor actually say?

T Rabi Sankar called cryptocurrencies “pure gamble based on mathematical bets.” He described them as “just a piece of code” without intrinsic value, backing, or an issuer.

Q3: Why is the RBI so opposed to crypto?

The RBI views crypto as a threat to financial stability. It believes these assets have no real value, enable illegal finance, and pose high risks to investors, unlike regulated money.

Q4: What happens next for crypto in India?

The government will make the final decision after reviewing all stakeholder feedback. The RBI’s strong stance increases the likelihood of severe restrictions or a potential ban.

Q5: Are all digital currencies bad according to the RBI?

No. The RBI distinguishes private cryptocurrencies from its own Central Bank Digital Currency (CBDC), the digital rupee. The digital rupee is a sovereign-backed legal tender.