RBI Deputy Governor’s Bold Claim: Bitcoin Lacks Real Value - Here’s What Crypto Experts Say

Another day, another central banker takes aim at Bitcoin. This time, it's the Reserve Bank of India's deputy governor declaring the digital asset holds no 'real value.' The statement lands as the crypto market continues its volatile dance—traditional finance's skepticism is a feature, not a bug.

Decoding the 'Value' Debate

What exactly constitutes 'real value'? For centuries, it was gold, then state-backed fiat. Bitcoin proposes a new paradigm: decentralized, digital scarcity. Critics see a speculative asset; proponents see programmable property and a hedge against monetary debasement. The deputy governor's view fits a familiar regulatory playbook—one often written before the technological plot twists.

The Institutional Tug-of-War

While public pronouncements dismiss crypto, private ledger activity tells a subtler story. Global financial institutions are quietly building infrastructure—custody, trading desks, tokenization projects. It's the classic finance two-step: publicly scorn the new asset class while privately positioning for its potential. A cynical move, but about as surprising as a bank charging a fee for the privilege of holding your money.

Beyond the Headline Soundbite

The real conversation isn't about today's price charts. It's about the underlying architecture challenging legacy systems. Blockchain technology enables peer-to-peer settlement, cuts out rent-seeking intermediaries, and creates auditable, global ledgers. That's the value proposition that keeps building, regardless of quarterly commentary from any central bank tower.

The market has heard this all before. It will nod politely, then continue its relentless march—driven by code, adoption, and a growing distrust in the old guards of finance.

Bitcoin, the world’s largest cryptocurrency, came under sharp criticism after the Reserve Bank of India’s Deputy Governor T. Rabi Sankar said the digital asset has no real value and is driven only by speculation. 

Despite raising such concerns from the Deputy Governor, crypto adoption in India continues to grow rapidly in spite of strict taxes and regulations.

Bitcoin Doesn’t Hold Real Value

Speaking at the Mint Annual BFSI Conclave 2025, RBI Deputy Governor T. Rabi Sankar said Bitcoin should not be seen as money or a financial asset. He explained that while the blockchain technology behind Bitcoin is innovative, Bitcoin itself was only created to showcase that technology, not to hold real value.

Sankar noted that blockchain proved it is possible to transfer digital tokens between unknown parties without needing a trusted middleman. This breakthrough opened the door to many useful applications across finance and other sectors. 

However, he stressed that bitcoin was never meant to represent value in the same way money does.

Bitcoin Compared to Tulip Mania

Further explaining his point, Sankar compared Bitcoin’s price movement to the famous tulip mania of the 17th century. He said Bitcoin’s price exists only because people are willing to pay for it, not because it has any underlying worth.

He added that Bitcoin is not backed by any issuer, promise to pay, or cash flow. Because of this, he believes it does not qualify as real money. He also argues that cryptocurrencies are not true financial assets since they do not earn income or represent ownership in a business.

Meanwhile, he warned that crypto is highly volatile, which is clear as Bitcoin is nearly 30% below its peak, while many other cryptocurrencies are down 40% to 70%.

India’s Growing Crypto User Base Despite Warnings

Despite these strong warnings from the central bank, India’s crypto market continues to expand. The country now has over 100 million crypto users, making it one of the largest crypto markets globally.

However, the government has maintained a cautious approach. In 2022, India introduced a 30% tax on crypto gains along with a 1% tax deducted at source (TDS) on every trade. 

These measures were designed to discourage excessive speculation while allowing authorities to monitor activity in the sector.