India’s RBI Advocates CBDCs Over Stablecoins to Safeguard Financial Stability
The Reserve Bank of India has issued a stark warning in its latest Financial Stability Report, asserting that privately issued stablecoins pose a systemic risk to monetary trust and financial stability. Central bank digital currencies (CBDCs), the RBI argues, must take precedence as the ultimate settlement asset to preserve the singleness of money and systemic integrity.
Stablecoins—pegged to fiat currencies but issued by private entities—could amplify financial stress during market turbulence, the report notes. Jurisdictions are urged to assess these risks and tailor policy responses accordingly. The warning comes amid seemingly stable global financial conditions, though underlying vulnerabilities persist.
Global growth in 2025 appears stronger than anticipated, driven by government spending, AI investments, and pre-tariff trade acceleration. Yet the RBI’s stance reflects a broader institutional skepticism toward decentralized alternatives to sovereign money.