India’s Central Bank Advocates for CBDCs Over Stablecoins

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The Reserve Bank of India has issued a stark warning, positioning privately issued stablecoins as a potential threat to financial stability and public trust in money. In its latest assessment, the central bank argued that sovereign digital currencies are the necessary alternative to prevent systemic risks.

This perspective was detailed in the RBI’s Financial Stability Report, a document representing the collective view of India’s key financial regulatory bodies. The report asserts that central bank digital currencies are crucial for preserving the uniformity of money and the integrity of the broader financial system.

The RBI characterized stablecoins as a rapidly growing source of risk, particularly during periods of market stress. It advised that all jurisdictions should critically evaluate the dangers posed by stablecoins and craft regulatory responses tailored to their own economic frameworks.

These cautionary remarks arrive at a time when global financial conditions appear superficially stable yet contain underlying vulnerabilities. The RBI’s report acknowledged that global economic growth in 2025 has surpassed expectations.

This stronger performance, according to the report, has been fueled by significant government spending, substantial investments in artificial intelligence, and a surge in trade activity ahead of the implementation of new international tariffs.