The Reserve Bank of India (RBI) Deputy Governor, T. Rabi Sankar, has reignited the debate on cryptocurrency's fundamental worth by delivering a scathing critique of Bitcoin. Speaking at the Mint Annual BFSI Conclave 2025, Sankar asserted that Bitcoin holds no real economic value and is driven solely by speculative demand, comparing its market behavior to the historical tulip mania bubble.
Sankar emphasized that Bitcoin's price is determined merely by what buyers are willing to pay, lacking any institutional backing, issuer promise, or cash flow. He clarified that while he views the underlying blockchain technology as revolutionary with valuable applications beyond crypto, Bitcoin itself was created primarily to showcase that technology and should not be considered money or a legitimate financial asset.
This criticism comes against the backdrop of a rapidly growing crypto user base in India, which now exceeds 100 million people, making it one of the largest markets globally. This growth persists despite a strict regulatory environment, including a 30% tax on crypto gains and a 1% Tax Deducted at Source (TDS) on all transactions implemented in 2022. These measures aim to curb speculation and enhance monitoring, yet retail participation, particularly among younger investors, remains high.
The Deputy Governor's remarks highlight the ongoing tension between regulatory skepticism and robust public adoption, framing a central debate on innovation versus financial stability risk in one of the world's most significant crypto economies.
