India’s central bank has renewed efforts to keep traditional banks insulated from cryptocurrency activities, emphasizing caution amid growing concerns over the risks linked to crypto assets. In discussions with a parliamentary finance committee, senior officials from the Reserve Bank of India (RBI) outlined a position recommending restrictions on the use of cryptocurrencies in payments and settlements and limiting banks’ exposure to the crypto sector.
The central bank highlighted that while outright prohibition of crypto remains a policy option, it stressed the importance of differentiating commercial cryptocurrencies from regulated tokenized financial instruments such as government securities and corporate bonds. This distinction aims to ensure that the growing field of tokenization is not stifled by overly broad regulations.
RBI officials warned that applying conventional regulatory frameworks to cryptocurrencies could unintentionally confer legitimacy on highly speculative assets, fostering a misperception of safety among users. The bank’s stance reflects ongoing global debates about how best to manage crypto risks without hindering innovation in digital finance and asset tokenization.
Meanwhile, Russia is progressing toward the launch of its central bank digital currency (CBDC), the digital ruble, which is scheduled for rollout within months. According to the governor of Russia’s central bank, preparations are complete for the digital currency’s introduction as a complement to the existing fiat ruble. The initial phase will focus on adoption by financial and credit institutions nationwide.
This development occurs despite sanctions from European Union authorities targeting the digital ruble, imposed in response to geopolitical tensions. The sanctions aim to limit the CBDC’s international use, underscoring the complex interplay between digital currencies and global politics.
In other regional crypto news, SBI Crypto, part of a major Japanese financial group, announced it will shut down its Bitcoin mining pool after five years of operation. Currently one of the top operators globally, SBI Crypto will cease accepting mining shares by the end of July, winding down activity and urging miners to continue contributing until the final payout phase is complete.
Additionally, US authorities have acted against illicit crypto use by sanctioning over a hundred cryptocurrency wallets linked to terrorist financing and freezing funds associated with Tether, a widely used stablecoin.