RBI Says Bitcoin Lacks Real Value and Should Not Be Treated as Currency

Highlights:

• RBI Deputy Governor says Bitcoin lacks real value and should not be treated as money.
• RBI highlights sharp price swings and warns investors about high risks in cryptocurrencies. 
• India’s crypto market keeps growing despite heavy taxes and strict regulations.

Bitcoin, the largest cryptocurrency by market value, again came under strong criticism from India’s central bank leadership. Speaking at the Mint Annual BFSI Conclave 2025, Reserve Bank of India Deputy Governor T. Rabi Sankar questioned Bitcoin’s worth and stated clear opposition to its recognition as money or a financial asset.

RBI Renews Criticism of Bitcoin at Financial Conclave

Governor’s remarks arrived during a period when digital currency activity continues across India. User participation keeps rising even under heavy taxation and close regulatory oversight introduced by authorities in recent years. The address reflected the Reserve Bank of India’s long-standing concerns about private cryptocurrencies and their place within the financial system.

During the speech, Sankar stated that Bitcoin does not carry real or intrinsic value. He said Bitcoin should not be treated as money or as a standard financial instrument under existing economic frameworks. He explained that blockchain technology proved to be a technical idea.

Digital tokens could pass between unknown parties without a trusted intermediary. Such a capability later found usage across finance and other fields. Sankar added that Bitcoin served mainly as a demonstration of blockchain use. According to him, Bitcoin was never designed to represent value in the same way as currency.

To explain his view, Sankar compared Bitcoin price behaviour with the tulip mania of the seventeenth century. He said Bitcoin prices exist only because buyers agree to pay certain amounts. The Deputy Governor said BTC lacks backing from any issuing authority. No promise to pay and no supporting cash flows exist behind Bitcoin pricing. He also stated that cryptocurrencies do not qualify as financial assets. Digital coins do not earn income and do not show ownership in any business entity.

RBI Flags Price Volatility as Crypto Adoption Grows Despite Strict Tax Regime

Sankar highlighted sharp price swings as another major concern. He said Bitcoin trades nearly 30% below its peak value. He also noted several other cryptocurrencies remain down between 40% and 70%. Such drops, according to RBI leadership, show high risk exposure for participants. Reserve Bank of India officials continue urging caution. Policy thinking focuses on stability rather than acceptance or reform.

Despite repeated warnings from the central bank, India’s crypto market keeps expanding. India now has more than 100 million crypto users, ranking among the largest global markets. User growth has continued even after the strict tax rules were introduced by the authorities. Participation at ground level remains steady across major trading platforms.

Government policy toward digital assets has remained strict. In 2022, authorities imposed a 30% tax on crypto gains. Despite heavy taxation, crypto participation has not slowed in a visible manner across India’s retail segment. India still lacks a complete national crypto structure. Internal policy discussions continue without final direction. Bitcoin remains at the center of tension between regulators and users. Debate now touches belief, trust, and the future of money, with no sign of compromise from either side.

Recently, John Ameriks, Vanguard’s global head of quantitative equity, raised doubts about Bitcoin as a long-term investment at Bloomberg’s ETFs in Depth conference in New York. He stated, “It’s difficult for me to think about Bitcoin as anything more than a digital Labubu.”