India’s central bank has warned policymakers that central bank digital currencies should take precedence over privately issued stablecoins as payment systems modernize. The December Financial Stability Report frames CBDCs as the only digital money capable of preserving the singleness of money, a principle the RBI ties to trust, settlement finality, and financial stability.
The RBI characterizes stablecoins as a potential source of systemic risk that could surface during market stress. The report notes privately issued stablecoins can create parallel monetary systems outside direct sovereign control, potentially accelerating capital flight and liquidity mismatches in emerging economies.
CBDCs, in contrast, are described as the ultimate settlement asset, backed directly by the central bank and meant to anchor trust in the monetary system. India’s government has signaled openness to exploring stablecoin regulation in its Economic Survey for 2025-2026, but the RBI remains the more cautious voice when it comes to crypto linked instruments. As the monetary authority, the RBI is expected to shape digital asset policy, especially where payments, capital flows, and policy transmission intersect. The divergence highlights a familiar global tension: governments weigh innovation and competitiveness, while central banks prioritize stability and control.
Globally, CBDC deployment remains limited; data from the Atlantic Council shows that only Nigeria, the Bahamas, and Jamaica currently operate live CBDCs. Dozens of other countries remain in pilot or research phases, underscoring how complex and politically sensitive CBDC implementation can. Meanwhile, stablecoins continue to gain traction, with DeFiLlama reporting rising total market capitalization through 2025 as regulators debate their long term role.
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