RBI Sees Stablecoins As Threat, Pushes CBDC Vision

While stablecoins have gained more than $100 billion in 2025 to peak at $307 billion according to DefiLlama, India is taking the opposite direction. The Indian central bank (RBI) states that only a sovereign digital currency guarantees monetary stability. In a global landscape where CBDCs struggle to impose themselves, New Delhi erects the e-rupee as a bulwark against the privatization of money.

The Official Position of the Indian Central Bank

In its financial stability report published at the end of December 2025, the Reserve Bank of India (RBI) takes a clear stance: CBDCs (central bank digital currencies) should be favored over stablecoins issued by private actors.

The institution considers CBDCs as the foundation for the future national and international monetary system. According to the report, the sovereign digital currency alone can guarantee “the uniqueness of currency and the integrity of the financial system”. It must remain “the ultimate settlement asset” and serve “as an anchor for confidence in the currency”.

These statements fit into a vision of strong monetary sovereignty, in which any delegation of currency issuance to non-state entities would lead to imbalances.

The RBI also issues an explicit warning against the risks associated with stablecoins, which it perceives as a potential threat to financial stability, especially during periods of market stress. It emphasizes that states must carefully evaluate “the risks associated” and adapt their monetary policy accordingly.

Here are the key points highlighted by the Central Bank :

• Stablecoins could introduce new channels of vulnerability, notably by bypassing traditional monetary circuits ;

• Their large-scale use risks eroding central banks’ ability to maintain financial stability by fragmenting the role of sovereign currency ;

• They lack the institutional backing and credibility that CBDCs enjoy, being issued directly by a national monetary authority ;

• Their unregulated growth could disrupt the transmission mechanisms of monetary policy, reducing the effectiveness of traditional tools.

In summary, the Indian central bank does not simply favor CBDCs. It considers that strict regulation, even marginalization of private stablecoins, is essential to protect the current monetary architecture.

A Booming Stablecoins Market Amid Slowed Global CBDC Adoption

As the Indian central bank toughens its stance, stablecoins are experiencing rapid growth worldwide, notably driven by their adoption in cross-border transfers.

According to DefiLlama, their capitalization rose from $205 to $307 billion in 2025, evidence of their perceived utility in the financial system. On-chain data indicate this growth relies largely on the interest of many American, European, and Asian financial institutions, attracted by the speed and low cost of these assets compared to traditional financial infrastructures.

Yet, despite the market’s enthusiasm for these private instruments, only three CBDCs are currently active worldwide: those of Nigeria, the Bahamas, and Jamaica, according to data from the Atlantic Council.

Forty-nine countries are in the pilot phase, twenty are currently developing their technology, and thirty-six others are only at the research stage. This gap between the market momentum for stablecoins and the slow development of CBDCs highlights a paradox: the Indian central bank advocates for a solution still largely experimental, even as real uses lean towards private solutions.

The stablecoins market reaches a record of $310.11 billion, but India maintains its stance: priority for state currency. This strategic choice reflects a will for strict monetary control facing an innovation still considered unstable. A posture that could redefine the balance between financial sovereignty and digital future.