revolutionisnotforall

🇮🇳 RBI Doubles Down: “Stablecoins Are a Systemic Risk”

India’s central bank (RBI) has reiterated a hard stance on stablecoins. Deputy Governor T. Rabi Sankar warned that even fully-backed stablecoins can create macro and financial stability risks, and argued they offer little real advantage over India’s existing payment rails.

🔍 Key Risks (in simple terms)

According to RBI, widespread stablecoin use could:

drive currency substitution (“digital dollarization”) if USD stablecoins replace the rupee

weaken monetary policy and liquidity control

complicate capital flows and increase financial vulnerabilities

raise AML/illicit finance concerns via opaque channels

reduce bank deposits, pushing up funding costs and systemic risk

A notable point: RBI suggests the biggest threat is a stablecoin that works well—because mass adoption could erode monetary sovereignty even without a collapse.

🏦 What RBI Supports Instead

RBI is pushing the digital rupee (CBDC) as the “sovereign” alternative, highlighting:

India already has ultra-efficient domestic payments (UPI / RTGS / NEFT)

plans for CBDC corridors and payment system links to improve cross-border transfers

ongoing CBDC pilots with ~7 million users, signaling continued momentum

🎯 What This Means for Crypto

Bearish for “stablecoin adoption in India”: RBI’s stance could support tighter rules

Bullish for compliant fintech + CBDC infrastructure: more focus on regulated rails

A clear signal for Asia: while the U.S./EU work on stablecoin frameworks, India remains one of the most hardline major economies on the topic.

Takeaway: India is betting on sovereign digital money and regulated rails—not private stablecoins.
#StablecoinRevolution #RevolutionIsNotForAll
$BTC $ETH $SOL