The Reserve Bank of India has reiterated its cautious stance on crypto assets, including stablecoins, saying that central bank money must remain the ultimate settlement asset and the anchor of trust in the monetary system. The central bank strongly advocated that countries should prioritize central bank digital currencies (CBDCs) over stablecoins to preserve trust in money and maintain financial stability.
RBI highlighted that CBDCs can achieve the benefits that stablecoins claim to offer - efficiency, programmability, and instant settlement - but with the credibility and safety of central bank money. While stablecoins have gained attention and their issuance has grown rapidly, their size remains low relative to the wider crypto asset market capitalization.
