Crypto poses risks to India’s financial stability: RBI
Cryptocurrencies, including stablecoins, pose significant risks to financial stability, according to the Reserve Bank of India.
Reiterating its long-held anti-crypto stance, the RBI highlighted the various risks involved with digital assets in its Dec. 30 Financial Stability Report for 2024.
While crypto adoption flourished at the grassroots level in India this year, the RBI raised a red flag, warning that unchecked use of digital assets, including stablecoins, could loosen monetary reins, open backdoors for capital flight, and “divert resources available for financing the real economy.”
According to the regulator, while the crypto market in India “remains small,” the narrowing gap between decentralized…
