RBI highlights risks and potential of asset tokenisation and crypto in 2024 report

The Reserve Bank of India (RBI) released its Financial Stability Report for 2024, highlighting that asset tokenisation is a growing trend but still in early stages. The RBI noted minimal current concerns but warned of potential risks as adoption increases. The report indicated that asset tokenisation could enhance liquidity in financial markets. However, the RBI expressed caution about vulnerabilities it may introduce, such as liquidity issues and operational risks, emphasizing that concerns are currently limited. The RBI reiterated its worries about cryptocurrencies, stating that their widespread use could threaten macroeconomic stability. The bank continues to monitor crypto price fluctuations, while the Indian government has not yet established a timeline for comprehensive crypto regulations.