RBI Governor Bans BTC and ETH to Support XRP? Fact Check

There has been breaking news on X that the Governor of the Central Bank of India (RBI) has called for a ban on Bitcoin (BTC) and Ethereum (ETH), and advocated for the use of XRP in payments.

Post on RBI Governor Bans BTC and ETH to Support XRP, Source: X

On X, numerous users such as TheXRP_guy have reported this rumor, and it immediately garnered the interest of the cryptocurrency community, particularly that of the supporters of XRP.

The post’s implication that an agreement to incorporate Ripple’s technology into India’s financial system might be in the works has fueled excitement about a potential XRP rally.

There is no word from an official source or an authentic platform to validate the above claim. The Reserve Bank of India has taken a cautious stance toward cryptocurrencies in general, often warning the public about the risks to financial stability, price volatility, and illegal activity.

The Governor and other RBI officials have already voiced their concerns about private cryptocurrencies However there has never been a ban to use crypto currencies like Bitcoin and Ethereum. RBI official have advocated for outright prohibition, but also wants to keep exploring the blockchain technology that these crypto currencies have bought along them.

The RBI has not officially sanctioned XRP or Ripple. Currently, the bank’s main interest in the space of digital currencies is the Digital Rupee, which is India’s Central Bank Digital Currency (CBDC). It is currently under development and testing to offer a regulated, low-cost, and scalable digital payment method.

Ripple has indicated interest in rolling out its cross-border payment solutions to other countries, such as India, and has collaborated with some financial institutions in the region previously. Yet, there is no suggestion that Ripple or XRP is on the radar of the Indian government or the RBI as an official solution currently.

In August 2024, CryptoTimes reported on India-UAE trading oil in local currencies. A tweet later falsely claimed Ripple partnered with India. There are even tweets claiming that Ripple had partnered with the Indian government and that the XRP Ledger supported the transaction.

However, there is no official confirmation of any such partnership or involvement of Ripple’s blockchain in the trade.