The banking regulator said that Central Bank Digital Currency (CBDC) instead offers similar efficiencies without the risks that are associated with stablecoins.
“The traditional monetary system, globally, rests on a two-tier banking system, wherein the central bank money-based settlement forms the edifice, while commercial banks can issue money which is beyond their reserves held, as the central bank can always provide liquidity for settlement, preventing a gridlock scenario,” the RBI said in its Payments Systems Report.
It added that this system ensures singleness of money, with the various money forms convertible at par without any questions, extends elasticity by way of central banks providing liquidity in excess of deposits, ensuring seamless settlement, and maintains integrity of payments.
“The stablecoins do not pass the said tests of singleness, elasticity, and integrity,” it explained.
The RBI said that CBDCs are fiat, ensure singleness of money, and preserve seigniorage income of the central banks, backed by sovereign guarantee, with no risk of fragmentation that the private issuance of stablecoins represents.
The report said that Unified Payments Interface’s (UPI’s) share of total payments volume had grown to 85.5 per cent in the second half of calendar year 2025 (H2CY25). Prepaid payment instruments (PPIs) stood at 3.6 per cent, followed by 2.6 per cent of card payments.
Total retail payments volume grew to 142.25 billion in H2CY25, a 28 per cent growth from 111.16 billion H2CY24.
“While credit cards, debit cards, PPI wallets, and UPI QR codes exhibit an upward trend, PPI cards, PoS terminals, bank-owned ATMs, CRMs and micro ATMs registered a decline during the six-month period,” the report added.
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