India Halts Cryptocurrency Policy Amid Systemic Risk Concerns

The Indian government has put its cryptocurrency policy paper on hold indefinitely due to concerns raised by the Reserve Bank of India (RBI) about systemic risks associated with crypto and stablecoins.

According to officials, the finance ministry had been working on the policy since 2023 to outline potential benefits and regulatory guidance for cryptocurrencies.

The RBI's concerns have led the government to shift its focus from regulating digital assets to promoting the Digital Rupee, a digital version of the Indian currency.