RBI Deputy Governor throws shade on stablecoins, backs digital rupee
RBI Deputy Governor T Rabi Sankar isn't convinced by stablecoins.
At a recent summit in Mumbai, he said they "don't serve a purpose that cannot be done better with CBDC," and warned they could threaten India's control over its currency and policies.
Quick catch-up:
The RBI has long argued that cryptocurrencies without backing have no real value or issuer.
Even though stablecoins are tied to assets, Sankar says they risk replacing local currency and could cause policy headaches.
Instead, the RBI is focusing on India's own digital rupee (e-rupee), which has already seen over 10 crore transactions in two years and is expected to make cross-border payments easier.
What's the buzz?
Sankar's comments have kicked off fresh debate in finance circles about whether stablecoins have a future here.
Earlier, RBI Governor Sanjay Malhotra also flagged concerns about private digital assets like dollar-backed stablecoins possibly shaking up financial stability.