Big comments coming from the RBI again. RBI Deputy Governor T. Rabi Sankar has made it clear that India is still not comfortable with stablecoins. According to him, stablecoins could create risks for the Indian economy and financial stability.

His main point is simple. Stablecoins, in his view, do not really add anything new that the Indian rupee already does. Payments, settlements, and value storage are already handled by ₹INR and the existing banking system. From the RBI’s perspective, stablecoins only duplicate these functions while introducing extra risk through private issuers and cross border flows.

This signals that the RBI remains firmly cautious, if not outright negative, on stablecoins for now. For the crypto market, this matters. Stablecoins are a major backbone for trading, liquidity, and on chain finance globally. A restrictive stance could slow down local adoption and innovation in India.

At the same time, this also shows why regulators are closely watching crypto growth. The debate is no longer about ignoring crypto but about controlling how it fits into the financial system. The stablecoin discussion is far from over, and future policy moves will be closely tracked by the entire crypto community.