The Reserve Bank of India has urged countries to focus on central bank digital currencies over privately-issued stablecoins, citing concerns about financial stability.
In its December financial stability report, released on Wednesday, the RBI argued that CBDCs preserve the “singleness of money and the integrity of the financial system,” and should remain as the “ultimate settlement asset” and the “anchor for trust in money.”
“The RBI, therefore, strongly advocates that countries should prioritise central bank digital currencies over privately issued stablecoins to maintain trust in money, preserve financial stability and design next generation payments infrastructure that is faster, cheaper and secure.”
The RBI also argues that introducing stablecoins can create new channels for financial stability risks, particularly during periods of market stress, and that it’s “vital that jurisdictions carefully assess the attendant risks and determine policy responses appropriate to its financial system.”
The government of India indicated in its Economic Survey 2025-2026 that it was considering regulations for stablecoins, while the RBI advocated a more cautious approach to crypto.
Central banks often shape the rules of money through policy and regulation, and the RBI will likely play a key role in how crypto is treated in India.
RBI says CBDCs are like stablecoins, but better
CBDCs are a hotly debated issue. Critics are concerned CBDCs could infringe on privacy and undermine the financial sector by allowing users to become direct customers of central banks, while advocates argue that CBDCs could improve payment efficiency and expand financial inclusion.
In its latest financial stability report, the RBI said CBDCs can achieve all the same benefits stablecoins offer, efficiency, programmability, and instant settlement, but with the credibility and safety of central bank money.
“The RBI maintains a cautious stance on crypto assets, including stablecoins, prioritising sovereign digital infrastructure to safeguard monetary sovereignty amid global shifts and preserve financial stability,” the bank said in the report.
Related: China to let banks pay interest on digital yuan wallets from January 2026
A range of financial institutions across the US, Europe, and Asia are moving into stablecoins for benefits such as faster, lower-cost transfers compared to traditional finance rails.
The interest has seen the market capitalization of the sector continue to grow, starting in 2025 at around $205 billion and ending the year at $307 billion, according to data aggregator DefiLlama.
CBDC adoption is slow around the world
Despite interest from some banks and governments, only three CBDCs have been launched so far, according to the American think tank, the Atlantic Council.
Its CBDC tracker lists Nigeria, the Bahamas and Jamaica as the only three jurisdictions with an active CBDC token, while another 49 countries are in the pilot phase, 20 are listed as developing the technology, and 36 are researching it.
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