The Reserve Bank of India refused to follow the US and European models in regulating stablecoins, emphasizing that dollar-denominated stablecoins threaten monetary sovereignty.

The Reserve Bank of India (RBI) has made it clear that it will not replicate the US GENIUS Act or the G7 model in regulating stablecoins. RBI Deputy Governor T. Rabi Sankar stated that stablecoins, especially those pegged to the US dollar, pose an inherent risk to India's monetary sovereignty and financial stability, potentially triggering currency substitution and "dollarization," and weakening monetary policy transmission. The RBI believes that India's existing payment systems, such as UPI, RTGS, and NEFT, are already sufficiently efficient, making stablecoins "unnecessary," and emphasized that it will prioritize the development of a central bank-controlled digital rupee (CBDC) rather than privately-owned stablecoins. (financefeeds)