The Reserve Bank of India has once again reaffirmed its stance that cryptocurrencies are best kept at a distance from the financial system. Documents obtained by Reuters reveal that the regulator is doubling down on a policy "leaning toward a ban." Banks and financial institutions are expected to avoid dealings with digital assets and private stablecoins. Meanwhile, Russia has approved the final version of its law "On Digital Currency and Digital Rights," permitting the use of digital assets in international settlements under the strict oversight of its Central Bank.
These decisions are driven by more than just a fear of market volatility. With its 39 million crypto holders, India is concerned about tax evasion and a loss of capital control. Conversely, Russia views crypto as a strategic tool to circumvent sanctions and maintain a foothold in global trade. These two nations represent two distinct approaches: one is shutting the door, while the other is locking it under its own supervision.
Both cases represent the age-old struggle for the right to define what constitutes money. By banning or heavily regulating alternatives, the state protects its monopoly on the issuance and movement of funds. For the average individual, this means that Bitcoin or stablecoin savings could suddenly fall into a legal gray area or be subject to strict limits—such as in Russia, where retail investors face a purchase cap of 300,000 rubles per year.
Imagine a river flowing past your home. If the authorities decide to block one channel and deepen another, the water will eventually find a new path. However, those living on the banks must adapt; while some lose access to familiar flows, others find new opportunities. The same applies to crypto: India's ban pushes participants toward offshore platforms, while Russia's law provides a legal, albeit strictly confined, channel for foreign trade.
History has demonstrated that when money becomes over-regulated, people find workarounds. Today, those workarounds are digital assets. Tomorrow, they will be something else. The real question is not whether crypto will vanish, but rather how much we will all pay for the state's attempt to maintain its monopoly over the way we trade and store value.
