RBI Deputy Governor Flags Macroeconomic Risks Of Stablecoins, Rejects Utility: Report

India's Central Bank Doubles Down: Stablecoins Pose Significant Risks, Utility Claims Dismissed

In a move that underscores its consistently cautious approach to digital assets, the Reserve Bank of India (RBI) has issued another stern warning regarding stablecoins. Speaking at a financial stability conference on December 12, 2025, an RBI Deputy Governor reiterated the central bank’s deep skepticism, arguing that stablecoins present considerable risks to financial stability and offer little genuine utility. This pronouncement sends a clear s…

RBI Deputy Governor Flags Macroeconomic Risks Of Stablecoins, Rejects Utility: Report

Reserve Bank of India’s (RBI) Deputy Governor T Rabi Sankar has warned that stablecoins pose major macroeconomic risks and rejected claims of their utility. He asserted they “do not serve any purpose fiat money cannot,” according to Reuters. In a speech in Mumbai, Sankar cautioned that while stablecoins have gained momentum, particularly after US legislation legitimised dollar-pegged tokens with a combined market cap surpassing $300 billion, a c…