India’s Central Bank Pushes For CBDCs Over Stablecoins

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.