India’s RBI Warns: CBDCs Must Replace Stablecoins to Prevent Financial Chaos
2026-01-02 04:25
India’s central bank has warned that the growing use of privately issued stablecoins could threaten financial stability and undermine trust in money, arguing that central bank digital currencies should take precedence if countries want to avoid systemic risks. The warning came in the Reserve Bank of India’s latest Financial Stability Report, released this week, which reflects the collective view of India’s major financial regulators. RBI Warns Stablecoins Could Amplify Financial Stress; How? The RBI indicated in the report that the central bank digital currencies maintain the singleness of money and the integrity of the financial system, and therefore, they are the ultimate settlement asset and the source of trust. In comparison, the central bank considered stablecoins to be a rapidly expanding source of risk, especially when markets become stressed. It asserted that jurisdictions should closely consider the risks that stablecoins present and develop policy responses that fit their system. The...
