🇮🇳 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.
