The Reserve Bank of India Calls on All Countries to Abandon Stablecoins

The Reserve Bank of India (RBI) has declared stablecoins high-risk assets and urged other countries to focus not on creating conditions for the development of stablecoins but on launching central bank digital currencies (CBDC).
Although stablecoins play an important role in the crypto industry, and their significance increased after the enactment of the US stablecoin regulation law, tokens pegged to fiat currencies do not meet the fundamental characteristics of money and could weaken the influence of central banks, fears RBI.

"Stablecoins are positioned as an alternative form of money, but it is crucial to understand: they do not meet the essential requirements that reliable real money must satisfy — uniformity, flexibility, and integrity," the Indian central bank stated.
Considering that stablecoins are issued by private fintech companies, their tokens may lose their peg to the underlying asset, resulting in significant losses for investors, officials warn.

The rapid growth in the number of stablecoins pegged to foreign currencies could lead to the replacement of these currencies and disrupt the monetary sovereignty of countries, the regulator stated.

RBI called on central banks worldwide to focus on developing their own digital currencies, lamenting that their global spread is too slow compared to stablecoins.

The Reserve Bank of India insists that CBDCs can preserve "monetary uniformity" through privacy protection, low transaction costs, and the ability to conduct international payments and transfers.

Last year, the Indian central bank announced its readiness to test its own digital currency in regions without internet access. Previously, India issued a directive on international settlements in digital rupees.
Earlier, the "Ministry of Finance" reported that in India, a stablecoin called Asset Reserve Certificate (ARC), pegged to the Indian rupee, is planned to be launched in the first quarter of 2026. The project's goal is to prevent liquidity outflows into dollar stablecoins, support the domestic economy, and increase demand for government debt.