Cryptocurrencies may lead to the dollarization of the economy and a loss of sovereign interest, according to RBI officials.

Top RBI officials warned cryptos are a threat to the countrys economic system, sources say . Cryptos can act as a payment method and replace the rupee in financial transactions both domestic and cross border, according to a panel member .

According to sources, top RBI officials, including former GST council chief Sushil Modi, warned that cryptos are a threat to the country's economic system, since they can act as a payment method and replace the rupee in financial transactions both domestic and cross border, and that they will reduce the RBI's ability to control the country's currency supply, according to a panel member.