A February 2, 2025 report by The Block, summarizing Reuters, said India was considering adjusting its stance on cryptocurrency. It pointed to uncertainty over policy, not an adopted ban, a confirmed Reserve Bank of India proposal or a settled change in direction.
- The report described a possible review, not a new rule.
- It did not say what policy change officials were weighing.
- Claims that the RBI was pushing for a prohibition and that Governor Sanjay Malhotra made related remarks need separate confirmation.
What the February 2025 report established
The Block reported that an economic affairs secretary said India was considering changing its crypto stance. It also said shifting attitudes around the world could further delay a discussion paper on crypto regulation.
The report does not identify the proposed change or say whether the Reserve Bank of India supported it. Considering a change is not the same as adopting one, and a discussion paper is not a regulation. The report alone cannot tell us what India’s policy is today or whether officials later acted.
It also does not back up separate claims that RBI Governor Sanjay Malhotra called for a policy “leaning towards prohibition, ” or that the RBI sought to limit regulated financial institutions’ exposure to crypto and private stablecoins. Those claims need confirmation from the relevant Reuters report, underlying documents or a reliable record of Malhotra’s remarks.
Technology and monetary assets are different questions
Distributed ledger technology (DLT) keeps synchronized records across multiple network participants. A DLT system can still limit who may access or administer it. “Distributed” does not necessarily mean open to everyone or free from central control.
Tokenization represents an asset, a claim or another form of value digitally as a token. The token may refer to an off-chain asset, but that does not mean the asset itself has moved onto a blockchain. Examples of asset tokenization efforts show how blockchain technology can be used separately from public cryptocurrencies.
Neither DLT nor tokenization requires a public cryptocurrency. A permissioned network could record tokenized assets without using Bitcoin or another public cryptoasset as its currency. In principle, that allows a government to support the technology while opposing particular monetary arrangements. The February report does not establish that this is the RBI’s stated position, though, or identify which tokenization uses it supports. India’s central bank has also been described as wary of crypto while backing tokenization.
Assets often grouped together as “crypto” can also differ sharply. Bitcoin has no central private issuer. A private stablecoin, by contrast, is issued by an organization and designed to track the value of another asset, often a national currency. Their designs and risks differ, so claims about privately issued money should not automatically be applied to every decentralized cryptoasset. The global stablecoin market is one area where the distinction matters.
The monetary concerns behind the debate
Governments and central banks may worry that widespread use of privately issued or foreign-currency-linked digital assets could complicate monetary policy, capital-flow management or financial oversight. These are risks to examine, not proof that crypto has already weakened India’s controls. The February report does not establish that Malhotra or the RBI made these specific arguments. Related concerns about digital assets and financial stability have also surfaced.
One related concept is the singleness of money: money in the same currency should generally be interchangeable at the same value. A rupee in cash and a rupee in a bank account are both expected to count as one rupee. If instruments denominated in rupees trade at different values or carry different risks, that uniformity could be challenged.
Private stablecoins raise a separate concern when they track a foreign currency. If people and businesses increasingly use them instead of domestic money, authorities may worry about monetary sovereignty, or a country’s ability to manage its currency and monetary system. The scale of that risk depends on adoption, regulation and how the assets are used. The technology alone does not determine it.
Payments are only one part of the case
The February report does not confirm claims that Malhotra described India’s domestic payments as fast, cheap and convenient, or argued that crypto was unnecessary for them. Nor does it establish that India has a specific plan to use central bank digital currencies (CBDCs) or linked regulated payment systems for cross-border transfers.
A CBDC is digital money issued by a central bank, unlike a stablecoin issued by a private organization. Interconnected payment systems are another possible way to move money across borders. Both come up in broader payment-policy debates, but their effectiveness depends on the details: access, settlement, cost, regulation and the systems involved. The February report does not show that a particular Indian arrangement is operating or would solve a specific payment problem.
Strong domestic payment infrastructure would not settle every question about crypto. Cross-border transfers, access and settlement are separate use cases. The useful comparison is whether a particular system improves a particular service without adding greater risks or costs, not simply “crypto versus existing payments.” Services that let people use crypto daily are another part of the broader picture.
Key questions and takeaways
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Did India adopt a crypto ban?
The February 2, 2025 report did not establish that India had adopted a ban. It described consideration of a possible change in stance, without saying what the change would be.
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Did the report confirm an RBI push for prohibition?
No. The Block’s account of Reuters reporting did not substantiate that claim or the alleged restrictions on financial institutions. Separate coverage has described the RBI’s hard line on crypto, but it does not confirm the specific claims about Malhotra.
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Can a government support tokenization but oppose some cryptoassets?
Yes. Tokenization and distributed ledgers do not require a public cryptocurrency. The February report does not establish whether the RBI has endorsed that distinction in these terms.
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Are CBDCs a proven replacement for crypto in cross-border payments?
No. They are one possible approach, but the report does not identify a specific Indian arrangement or show that it has delivered a particular outcome.
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What is known about India’s current policy?
The February 2025 account is evidence that officials were reportedly considering a review at the time. It does not establish what happened afterward, so it cannot provide a full update on current rules.
