Overview
- Speaking at a Business Standard event in Mumbai on Oct. 30, Deputy Governor T Rabi Sankar warned that stablecoins carry huge risks to policy sovereignty and signaled India will avoid them even if asset-backed.
- He reiterated the RBI’s view that private cryptocurrencies do not serve any purpose and are unnecessary.
- He argued that any use case claimed for stablecoins can be met by a central bank digital currency, citing programmability and cheaper cross-border payments.
- India’s e-rupee pilot has recorded over 10 crore transactions in two years, with the RBI emphasizing a cautious rollout as more than 70 countries explore CBDCs.
- Sankar said the RBI will ensure adequate liquidity for productive activity and prioritize capital inflows, noting stepwise capital account liberalisation and fresh draft rules on external commercial borrowings.