India To Prevent Banks From Owning Crypto The Reserve Bank of India's (RBI) plan to bar banks and financial institutions from owning, trading, or gaining exposure to digital assets has left many wondering about its motivations.
The central bank's stated concern is that cryptocurrencies pose a risk to monetary sovereignty, which it fears could undermine the country's ability to control its own currency and economic policy.
The RBI specifically warns against "foreign backed" stablecoins, privately issued tokens pegged to fiat currencies like the US dollar.