Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar has launched a scathing critique of Bitcoin, declaring it has no real economic value and is driven purely by speculation. Speaking at the Mint Annual BFSI Conclave 2025, Sankar stated that Bitcoin lacks intrinsic worth, institutional backing, and does not generate cash flows, disqualifying it as a financial asset.
He drew a direct comparison to the 17th-century Dutch tulip mania, warning that Bitcoin's price is sentiment-based rather than fundamental. Sankar emphasized that price increases do not equate to value creation and cautioned that unregulated crypto assets pose systemic risks to financial stability. He did, however, acknowledge the underlying blockchain technology as revolutionary and valuable beyond cryptocurrency.
This skepticism from India's central bank leadership comes despite the country's massive and growing crypto adoption. India boasts an estimated 100 to 119 million cryptocurrency users, making it one of the largest markets globally. This growth is fueled significantly by younger investors, with over 37% of users belonging to Generation Z.
The market expansion persists even under a stringent regulatory regime that includes a 30% tax on crypto gains and a 1% Tax Deducted at Source (TDS) on all transactions. While these measures have dampened trading volumes, they have not halted participation, with exchanges continuing to onboard new users. Chainalysis data places India at the forefront of grassroots crypto adoption worldwide.
The remarks highlight a deepening policy divide. Regulators like the RBI prioritize financial stability and control, viewing volatile, decentralized assets with suspicion. Meanwhile, market participants and proponents argue Bitcoin's value stems from its fixed supply, decentralization, and utility as a hedge and store of value, rejecting historical bubble analogies. With Bitcoin trading near $90,000—still about 30% below its all-time high—long-term holders are increasing and institutional interest remains, underscoring the tension between official skepticism and real-world adoption.
