Private currency risks undermine monetary sovereignty, recommending prohibition to protect monetary policy and financial integrity.
Cryptocurrencies are decentralized tokens lacking issuer backing, intrinsic value or cash flows and thus do not fit conventional categories of currency, financial asset or commodity. Their anonymity and borderless design enable evasion of KYC and AML/CFT frameworks and create risks to monetary sovereignty, deposit mobilisation, credit creation, foreign exchange management and financial stability. Stablecoins heighten substitutability risk; concentrated ownership increases manipulation potential. Distributed ledger benefits can be realised without native tokens, and policy assessment finds prohibition the most prudent option to protect monetary policy and financial integrity.