The Reserve Bank of India issues a strong warning on stablecoins, emphasizing the necessity of CBDC

Source: TokenPost Original Title: India’s Central Bank Issues Strong Warning on Stablecoins… Reaffirms Need for CBDC Original Link:

India’s Central Bank Issues Strong Warning on Stablecoins

India’s Reserve Bank of India (RBI) warns that the proliferation of privately issued stablecoins could threaten financial system stability. The bank also emphasizes the necessity of adopting Central Bank Digital Currency (CBDC).

This view comes from the RBI’s latest Financial Stability Report, which consolidates the common perspectives of India’s major financial regulators. The analysis indicates that stablecoins could amplify systemic risks in a financial crisis scenario.

Clear Position: CBDC as the Sole Settlement Method

According to the report, CBDC possesses the “uniqueness” characteristic of currency and can serve as a “trust foundation” to ensure the integrity of the financial system. In contrast, stablecoins have a fragile structure that can quickly amplify risks under market stress.

RBI emphasizes: “Regulatory authorities should formulate policies and measures to address the potential systemic risks posed by stablecoins.” This is related to fragile macroeconomic conditions such as asset overheating, high debt ratios, and increasing interconnectedness among financial institutions.

Stablecoin Market Cap Surpasses $300 Billion… Risks Increase

The report states that by the end of 2025, the global stablecoin market cap has exceeded $300 billion (approximately 4.34 trillion yuan). Most of these are pegged to the US dollar and dominated by a few large issuers.

The central bank warns that this structure tightly links traditional financial markets with stablecoins, and large-scale redemption requests during crises could trigger a decline in assets such as short-term government bonds.