India Has No Case for Stablecoins, Says RBI Deputy Governor

India does not see a compelling case for integrating private stablecoins into its domestic financial system, Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar said, reiterating the central bank’s long-standing concerns around monetary sovereignty, financial stability, & systemic trust.

Speaking on India’s evolving digital finance framework, Sankar made it clear that while India remains open to technological innovation such as blockchain & tokenization, private digital currencies, particularly stablecoins, pose risks that outweigh their benefits in the Indian context.

• Stablecoins Risk Undermining Trust in the Financial System
• Why the U.S. Can Embrace Stablecoins & India Cannot
• Blockchain Is Transformative, Cryptocurrencies Are Not Money
• Implications for India’s Digital Finance Roadmap

Stablecoins Risk Undermining Trust in the Financial System

According to Sankar, stablecoins have the potential to erode confidence in the national currency & the regulated payment infrastructure, especially in emerging market economies like India. He emphasized that policy choices around digital money must be rooted in domestic compulsions, not global experimentation or regulatory trends abroad.

India already operates one of the most advanced & efficient payment ecosystems globally. Platforms such as UPI & allied digital payment systems offer instant, low-cost, & highly scalable transactions, leaving little room for stablecoins to add meaningful value in domestic payments.

“There really isn’t a case for stablecoins to give added value here,” Sankar said, noting that even before accounting for systemic risks, India’s existing infrastructure makes their adoption unnecessary.

A Policy Framework Anchored in Monetary Sovereignty

The RBI’s stance is not a rejection of innovation, but a structured policy approach anchored in four guiding principles:

• Preserve trust in the national currency, monetary framework, & payment systems
• Safeguard monetary sovereignty & macro-financial stability
• Encourage responsible innovation through CBDCs & interoperable payment systems
• Ensure innovation strengthens, rather than bypasses, the regulated financial ecosystem

Sankar stressed that decisions taken today will shape the future integrity of India’s monetary system, making clarity & coherence essential for long-term stability.

BREAKING: 🇮🇳 RBI Deputy Governor T. Rabi Sankar explains why India’s stablecoin approach cannot mirror the US “GENIUS Act” 🇺🇸 pic.twitter.com/1EIv9Vlt0s

— Crypto India (@CryptooIndia) December 13, 2025

Why the U.S. Can Embrace Stablecoins & India Cannot

Addressing comparisons with the U.S., where legislation such as the GENIUS Act has moved toward granting legal clarity to stablecoin issuers, Sankar highlighted the unique macroeconomic position of the U.S. dollar.

The dollar is used in nearly 90 percent of global transactions, & the two largest stablecoin issuers, together accounting for roughly 90 percent of global supply, are American companies. This creates national incentives that do not apply to most emerging & developing economies.

Sankar noted that the risks posed by stablecoins apply even to advanced economies, but countries like India face greater exposure due to capital flow volatility, currency substitution risks, & reduced monetary control.

Blockchain Is Transformative, Cryptocurrencies Are Not Money

Sankar drew a clear distinction between blockchain technology & cryptocurrencies themselves. He described blockchain as a revolutionary breakthrough that enabled trusted digital transfers between unknown parties without intermediaries, opening the door to tokenization, asset exchange, & settlement innovations.

Cryptocurrencies like Bitcoin, however, do not meet the basic attributes of money. They have no intrinsic value, no issuer, no promise to pay, & no underlying cash flows. As a result, Sankar argued, they are neither money nor financial assets.

He compared cryptocurrency price movements to 17th century tulip mania, describing them as speculative prices driven by willingness to pay rather than economic value.

Implications for India’s Digital Finance Roadmap

Sankar’s remarks reaffirm India’s regulatory direction amid global experimentation with crypto frameworks. For India, the roadmap is clear:

• Stablecoins will not be integrated into domestic payment systems.
• Cryptocurrencies will not be recognised as money or financial assets.
• Blockchain & tokenization will be pursued within regulated frameworks.
• CBDCs & interoperable payment rails will remain the primary innovation path.

India, Sankar concluded, stands at a critical policy crossroads where protecting trust, sovereignty, & systemic resilience must take precedence over rapid adoption of private digital currencies. By separating technological progress from speculative instruments, the RBI is positioning India’s digital finance future firmly within the regulated financial system.

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