RBI Sees Stablecoins As Threat, Pushes CBDC Vision
India's central bank has drawn a hard line against stablecoins, positioning its digital rupee as the only viable path for monetary stability. The Reserve Bank of India's December 2025 financial stability report frames CBDCs as critical infrastructure for sovereignty, rejecting private alternatives despite their $307 billion market dominance.
Systemic risk concerns dominate the RBI's rationale. The institution warns that dollar-pegged stablecoins could destabilize emerging economies during market stress, creating currency substitution risks. This stance contrasts sharply with global crypto adoption trends, placing India at the forefront of sovereign digital asset experimentation.
The e-rupee project advances as a technological bulwark. Unlike struggling CBDC initiatives elsewhere, India's program emphasizes interoperability with legacy finance systems while maintaining central bank control over monetary policy levers.
