RBI reiterates cautious stance on crypto assets, stablecoins for stability

RBI reiterated its cautious view on crypto assets and stablecoins, stressing that CBDCs should remain the anchor of trust and the core settlement asset in the monetary system

The Reserve Bank of India (RBI) has reiterated its cautious stance on crypto assets, including stablecoins, saying that central bank money must remain the ultimate settlement asset and the anchor of trust in the monetary system. The central bank also strongly advocated that countries should prioritise central bank digital currencies (CBDCs) over stablecoins to preserve trust in money and maintain financial stability. 

 Additionally, RBI highlighted that central bank digital currencies (CBDCs) can achieve the benefits that stablecoins claim to offer, i.e., efficiency, programmability, and instant settlement, but with the credibility and safety of central bank money. According to the RBI, while stablecoins have gained attention in recent years, and their issuance has grown rapidly, their size remains low relative to wider crypto asset market capitalisation.