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India central bank urges focus on CBDCs over stablecoins

Written by Isaac FrancisPublished Jan. 1 2026Last Updated Jan. 1 2026

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India’s central bank has called on countries to prioritise central bank digital currencies over privately issued stablecoins.

The Reserve Bank of India said the approach is necessary to protect financial stability and public trust in money.

The comments were made in the RBI’s financial stability report released in December.

The RBI argued that CBDCs preserve the singleness of money within an economy.

It said central bank digital currencies should remain the ultimate settlement asset.

The bank described CBDCs as the anchor for trust in modern monetary systems.

The RBI strongly advocates that countries should prioritise central bank digital currencies over privately issued stablecoins.

The report said.

The RBI warned that stablecoins could introduce new financial stability risks.

It said those risks may become more pronounced during periods of market stress.

The bank urged jurisdictions to carefully assess stablecoin-related threats.

It said policy responses should reflect the structure of each financial system.

India’s government has signalled it may consider regulations for stablecoins.

However, the RBI continues to maintain a cautious stance on crypto assets.

The central bank said sovereign digital infrastructure is key to monetary sovereignty.

CBDCs remain a controversial topic among policymakers worldwide.

Critics argue CBDCs could undermine privacy and disrupt banking models.

Supporters say CBDCs can improve payment efficiency and financial inclusion.

The RBI said CBDCs can deliver efficiency, programmability and instant settlement.

It argued these benefits can be achieved with the safety of central bank money.

The RBI maintains a cautious stance on crypto assets, including stablecoins.

The report said.

Financial institutions globally are increasingly exploring stablecoins for faster transfers.

The stablecoin market grew significantly during 2025.

Market capitalisation rose from about $205 billion to $307 billion.

Despite growing interest, global CBDC adoption remains slow.

Only Nigeria, the Bahamas and Jamaica have launched active CBDCs so far.

Dozens of other countries are piloting or researching CBDC technology.