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RBI Deputy Governor T. Ravi Shankar has completely refused to consider cryptocurrency as currency. He described it as just a piece of code and said that it had no intrinsic value, issuer or government backing. Know what else was said…
New Delhi. Reserve Bank of India (RBI) Deputy Governor T. Ravi Shankar has once again clarified his strong stance on cryptocurrency and refused to consider it as ‘currency’. He simply said that cryptocurrency is not actually a currency, because it does not have the basic properties of money or currency.
Speaking at the Mint Annual BFSI Conclave 2025, Ravi Shankar described cryptocurrencies as just a piece of code. He stressed that it is neither a financial asset nor any other type of asset.
The Deputy Governor explained why these tokens cannot be called ‘money’-
- No intrinsic value: Cryptocurrencies have no intrinsic value.
- Absence of Issuer: They are not backed by a promise of payment, and they have no issuer.
- Pure speculation: Their value is completely based on speculation.
Ravi Shankar explained that any currency or deposit is backed by the promise of a trustworthy issuer, and the credibility of money comes from the sovereign that supports its value.
RBI Deputy Governor T. Ravi Shankar. (file photo)
For example, the real value of any currency or deposit is based on the trust that is placed in its issuer. With respect to the rupee, this trust is based on the Reserve Bank of India and the Government of India. When you hold a Rs 100 note, the promise written on it that ‘I undertake to pay Rs 100 to the bearer’ is actually a guarantee by the RBI. Similarly, your trust in bank deposits remains because the banking system is supported by the government and regulatory institutions. But this is not the case with crypto.
He said that the real problem with cryptocurrencies is that they present themselves as a new type of money, but they have no real or intrinsic value.
It is worth noting that cryptocurrencies are digital or virtual currencies, which run on a decentralized blockchain network rather than under the control of a central bank. In India, they are not regularized. Although trade or transactions in these are not restricted or illegal, but the tax burden is quite high.
