2026-01-08 10:20:53

India's monetary authority is making its stance clear: central bank digital currencies come first, stablecoins come second. The Reserve Bank of India has flagged serious concerns about stablecoins, particularly their systemic risks when markets get turbulent. Their argument? CBDCs offer the same operational benefits—efficiency, programmability, real-time settlement—but without the structural vulnerability of private issuers controlling the money supply.

The distinction matters. When market stress hits, privately-issued stablecoins can face confidence crises and redemption pressures. A CBDC backed by the central bank eliminates that counterparty risk entirely. India's latest Economic Survey for 2025-2026 reinforces this positioning, signaling that the country's financial stability framework will prioritize government-controlled digital currency infrastructure over alternative stablecoin models.

For crypto markets and fintech builders in the region, this represents a clear regulatory preference: the future of digital payments in India runs through official channels.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

20 Likes

Reward
20
7
Repost
Share

Comment

0/400

MEVictim

· 01-11 09:35

The Reserve Bank of India’s move, to put it simply, is about monopolizing the digital currency market. --- Are stablecoins really that dangerous? It feels like they're just finding reasons to suppress them. --- CBDC with government backing is indeed satisfying, but if this continues, the space for innovation will be squeezed. --- It's the same old centralized control tactics; it will depend on how the crypto community responds. --- Private stablecoins do carry risks, but if everything is handed over to the government, I don't think it's necessarily safer. --- India's move is quite aggressive; will it affect other countries' attitudes in the future?

View OriginalReply0

RektButSmiling

· 01-09 19:44

India is just talking big here, but isn't it just trying to monopolize the digital currency market --- With the arrival of CBDC, stablecoins will have no room to survive. India’s move is quite ruthless --- It's another story of a central bank wanting to control everything. Nothing new --- Speaking of which, private stablecoins indeed carry high risks, but CBDC isn't necessarily completely safe either --- India is setting up "official channels" for fintech builders, but their true intention isn't just about the technology --- So in the future, retail investors can only use the Indian Central Bank's digital rupee, losing their choice --- Hey, there's a bit of a logical problem here. No matter how good CBDC sounds, it can't change the essence of centralization --- Another country is choosing sides. The era of CBDC vs. stablecoins is about to begin

View OriginalReply0

GreenCandleCollector

· 01-08 10:49

India is starting to push their central bank digital currency again. Basically, they want to hold all the money in their hands, and stablecoins have no chance. --- CBDC sounds good, but it still feels like an extra layer of censorship, which reduces freedom. --- Laughable. If stablecoins are so risky, how has USDT survived all these years? The logic doesn't add up. --- India's move is just to prevent private control of money, a classic power centralization argument, cloaked in grandiose language. --- Finally, someone dares to say it openly: official digital currency is meant to wipe out the market share of stablecoins. --- Isn't this just a disguised ban on stablecoins, just dressed up as CBDC? I see through it. --- Central bank digital currencies definitely reduce the risk of private issuers, this must be acknowledged. --- India's financial system wants to control everything, leaving no room for DeFi players to breathe.

View OriginalReply0

LiquidatedDreams

· 01-08 10:47

The Reserve Bank of India is determined to monopolize digital currency --- In other words, they are afraid that private stablecoins will disrupt their monopoly. No matter how well they package it, that's the reality --- With CBDC coming, is there still a future for stablecoins? It feels like India is playing a pretty tough move --- Again under the guise of "financial stability," but in reality, it's about controlling all the flow of money --- Fintech builders need to figure out how to make friends with official channels... This just got complicated --- The systemic risk of private stablecoins definitely exists, but does CBDC have no risk? That logic is a bit one-sided --- India's move seems to be setting a "new benchmark" for other central banks --- Counterparty risk is gone, but a new control risk has emerged—it's just swapping one risk for another --- Looks like I have to wait patiently for official channels; the private chain dream is shattered

View OriginalReply0

FallingLeaf

· 01-08 10:44

The Reserve Bank of India is basically slapping private stablecoins in the face, essentially still aiming for control.

View OriginalReply0

WalletDetective

· 01-08 10:28

India's move is actually aimed at monopolizing the digital payment discourse. --- CBDC vs stablecoin is not really so opposed; both have risks. --- Another sign that a country wants to clamp down on crypto... India’s move is quite aggressive. --- Wait, if RBI is so afraid of stablecoin collapse, what if their own CBDC encounters problems? No one can save it. --- The excuse of financial stability, frankly, is just not wanting to delegate authority to private issuers. --- Regulation in South Asia is becoming increasingly strict; fintech is about to face challenges.

View OriginalReply0

MevSandwich

· 01-08 10:27

India's central bank is trying to monopolize the discourse on digital currencies with this move. CBDC sounds good, but it lacks the flexibility of private chains. The crackdown on stablecoins... is understandable, as the risks are indeed present. Here comes another "official channel," the nightmare of centralization is always lurking. By the way, can they really control all deposits and withdrawals? I doubt it. With CBDC being heavily promoted and stablecoins pushed aside, this map is about to change. It feels like déjà vu; all central bank digital currencies sound the same. Fintech companies in India might have a tough time ahead...

View OriginalReply0