RBI Deputy Governor T. Rabi Sankar took a tough approach to the Bitcoin debate. He delivered the speech at the Mint’s BFSI 2025 Annual Conclave. He did not believe Bitcoin had any real or intrinsic value and also compared its price rise to the Dutch tulip mania of the 17th century. Sankar emphasized that Bitcoin has no issuer backing. He also highlighted the lack of cash flow. These aspects make Bitcoin not a stable financial instrument in their opinion. His comments reiterate the RBI’s long-standing doubts regarding cryptocurrency privacy.
Volatility risk comes to the fore thanks to Tulip Mania Comparison
Sankar applied the analogy of tulip mania to emphasize the risk. He said that Bitcoin’s valuation is based on sentiment. He stated that it is more speculation than fundamentals that drives its price. The comparison sends a warning to retail investors. Emphasizes the threat of seeking quick profits. The RBI still gives preference to financial stability. Sankar warned that unregulated assets have the potential to increase systemic risk. He stressed that a price increase does not imply creation of value. He argued that sustainable assets need trust, support and responsibility. These views are similar to the RBI’s earlier views. The Federal Reserve has urged against exposure to cryptocurrencies several times.
Cryptocurrency development in India faces cynicism from regulators
The crypto industry in India continues to expand despite severe criticism. The nation has almost 119 million cryptocurrency users. It is the largest cryptocurrency user base in the world. Growth is driven by young investors. More than 37 percent are generation z users. This expansion continues even after high taxes. India imposes a 30 percent tax on crypto profits. It also applies a 1 percent TDS on all transactions. These steps minimized trading volumes. They did not end participation. They are still developing. Users continue to join through exchanges. Interest in retail is high across cycles.
Bitcoin is trading near 90,000. It is about 30% off the all-time high. However, demand is stable. Long-term holders continue to increase. Institutional interest is still present in the world. Adoption measures continue to increase. Chainalysis puts India at the forefront of grassroots cryptocurrency adoption. Its proponents claim that the supply of Bitcoin becomes fixed and therefore becomes valuable. They see decentralization as their support. They reject analogies with historical bubbles. This is a gap that continues to grow. Regulators focus on risk. Markets are based on scarcity and utilization.
Market reality clashes with political concerns
The RBI’s comments indicate that there is a greater political divide. Regulators focus on stability and control. Crypto contradicts both ideas. Sankar warns as a way to be careful and not reform. There is still no extensive crypto system in India. The debate over domestic policy still continues. Meanwhile, implementation occurs at the grassroots level. Bitcoin is still at the point of this tension. Price charts are no longer the focus of controversy. Strike the ideology, faith and money of tomorrow. Both parties do not seem willing to change their position.
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