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India's central bank recommends implementing "isolation + exclusion" type crypto asset control.

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ME News reports that on July 3 (UTC+8), the Reserve Bank of India (RBI) said in its submission to the Parliament’s Standing Committee on Finance that a ban remains an important option in the international regulatory framework. It recommended adopting a containment strategy leaning toward “prohibition” to completely isolate regulated financial institutions such as banks from crypto assets and privately issued stablecoins. The RBI warned that if such entities were regulated like traditional financial assets, it could create a “safety” illusion for highly speculative products that have “no real economic benefit,” and could trigger financial stability risks. The RBI also emphasized that widespread use of stablecoins may weaken monetary sovereignty, interfere with monetary policy transmission, and fracture the payment system, reiterating that central bank digital currency (CBDC) should be used to strengthen the country’s digital payments infrastructure. (Source: PANews)
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