Overview
- Governor Sanjay Malhotra said cross-border payment gains from digital money will materialize only if multiple jurisdictions adopt central bank digital currencies.
- He argued CBDCs retain the singleness and integrity of money as state-issued fiat, can be tokenized, and offer the practical advantages associated with stablecoins.
- The Reserve Bank of India is running both retail and wholesale CBDC pilots as it positions the e-rupee for domestic use and future international settlement rails.
- Malhotra reiterated risks from private crypto to monetary policy, capital flows and anti–money laundering efforts, with the RBI warning that dollar-linked tokens could spur de facto dollarisation.
- Policy momentum abroad continues for regulated stablecoins, including the US Senate’s passage of the GENIUS Act, South Korea’s National Assembly passing the Digital Asset Basic Act, and Hong Kong’s licensing regime for fiat-referenced issuers.