RBI Says Stablecoin Risks Outweigh Benefits, Urges CBDC Priority
The Reserve Bank of India has reiterated strong caution on privately issued stablecoins, arguing in its Financial Stability Report that their risks to financial stability outweigh any benefits. The report, published at the end of 2025, says governments should treat stablecoins warily and gives a clear policy nudge toward central bank digital currencies (CBDCs) as safer, public alternatives. This position matters for issuers, investors and payment providers: it signals tighter regulatory scrutiny in India and could influence other jurisdictions weighing policy on digital assets. A push for CBDCs over private stablecoins would reshape how digital payments and cross-border flows evolve, potentially limiting market roles for existing stablecoins while accelerating central-bank digital currency development and oversight globally.