Mumbai: Central Bank Digital Currencies (CBDCs) are digital tokens like Stablecoins, but they are inherently superior since they satisfy all the attributes that money should have, RBI Deputy Governor T Rabi Sankar argued.
According to the RBI Deputy Governor, sovereignbacked digital currencies are fiat, single, trusted, represent value and do not pose many of the risks associated with Stablecoins.
Speaking at an event in Mumbai, themed ‘Stablecoins - Do They Have a Role in the Financial System’, the RBI Deputy Governor noted that India’s approach to Stablecoins must be guided by caution and an appreciation of domestic imperatives.
Stablecoins lack the basic attributes of money, their advantages are neither unique nor unambiguous, and their risks are all too real, he said.
“Stablecoins can undermine trust in the currency and finance system. India already benefits from a payments landscape that is highly efficient, reliable, and robust. Systems such as UPI, RTGS, and NEFT provide fast, low-cost, and secure payment capabilities to millions of users,” the RBI Deputy Governor said at the Mint Annual BFSI Conclave 2025 on December 12, 2025, in Mumbai. The speech text was made available on the RBI website.
“This leaves little justification for their (stablecoins’) integration into the financial system, even before considering the broader risks they pose. India’s policy on stablecoins must be driven by domestic priorities,” he added.
Domestic priorities must drive India’s policy on stablecoins, he suggested.
At the same time, he also noted that India must acknowledge the promise of innovation that technologies such as blockchain and tokenisation bring
