With reference to the Reserve Bank of India's stance on digital assets and economic factors, consider the following statements: 1. The RBI supports the use of distributed ledger technology and tokenisation. 2. The RBI has expressed opposition to the use of distributed ledger technology. 3. Hardening bond yields are linked to increased government and private spending on artificial intelligence. Which of the statements given above is/are correct?

RBI Governor Sanjay Malhotra warns of cryptocurrency risks to India's monetary sovereignty

GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims + Mains· 3 October 2026

Monetary sovereignty and digital assets: a key GS3 topic regarding central bank regulation.

Why in news

RBI Governor Sanjay Malhotra warned of cryptocurrency risks to India's monetary sovereignty while expressing support for distributed ledger technology and tokenisation.

Background

RBI Governor Sanjay Malhotra spoke at the Kautilya Economic Conclave on October 3, 2026. He linked rising public debt and hardening bond yields to increased government and private spending on artificial intelligence.

Facts for Prelims

PostSanjay Malhotra: Governor of the Reserve Bank of India (RBI)
FactRBI supports distributed ledger technology and tokenisation
FactHardening bond yields are linked to increased spending on artificial intelligence

Prelims practice question

With reference to the Reserve Bank of India's stance on digital assets and economic factors, consider the following statements:

The RBI supports the use of distributed ledger technology and tokenisation.
The RBI has expressed opposition to the use of distributed ledger technology.
Hardening bond yields are linked to increased government and private spending on artificial intelligence.

Which of the statements given above is/are correct?

(a)2 only
(b)1 and 3 only
(c)2 and 3 only
(d)1, 2 and 3

Show answer

Answer: (b) 1 and 3 only — Statements 1 and 3 are correct. Statement 2 is incorrect: The RBI supports distributed ledger technology and tokenisation.

For Mains

Q. Discuss the implications of decentralized cryptocurrencies on a nation's monetary sovereignty and the role of the central bank in regulating digital assets.

Dimensions to cover in your answer

Monetary policy friction: Difficulty in controlling money supply and inflation with decentralized, non-sovereign digital assets
Fiscal-monetary nexus: Impact of high public debt and AI-driven spending on bond yield stability
Regulatory dilemma: Balancing innovation in distributed ledger technology with risks to financial stability

Keywords: monetary sovereignty · distributed ledger technology · tokenisation · bond yields · fiscal policy · digital assets

Read the full news →Source: The Hindu ↗Also: GS3 · IT, AI, semiconductors & computing

More Economy notes

Nomura cuts PB Fintech net profit estimates by 72% for FY28 after insurance reforms · 10 October 2026
Karnataka Form 7 applications rise by 19,376 amid alleged bulk deletions · 10 October 2026
Telangana to introduce 10 new generation policies for semiconductors and logistics · 9 October 2026
Karnataka wins award for 9 GW highest under-construction wind power capacity · 9 October 2026
DEA committee approves ₹5,000 crore KfW funding for Telangana-CRUTI sewerage project · 9 October 2026
Tech job losses reach 253,000 as India's GCC ecosystem grows to 2,117 centers · 9 October 2026

All Economy current affairs →

This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.