The government of India may consider stablecoin regulations in its Economic Survey 2025-2026, while the Reserve Bank of India (RBI) takes a “cautious” approach to crypto and pushes for a central bank digital currency (CBDC), revealing a divergence in policy recommendations.
The government will “present its case” for stablecoins in the annual report published by India’s Ministry of Finance, which outlines key policy recommendations and the state of the economy, business publication MoneyControl reported, citing an official familiar with the matter.
However, the central bank continues to urge a “cautious” approach to stablecoins, according to RBI Governor Sanjay Malhotra. Speaking at the Delhi School of Economics on Thursday, he said:
“We have a very cautious approach towards crypto because of various concerns that we have. Of course, the government has to take a final view. There is a working group which was set up earlier, and they will make a final call as to how, if at all, crypto is to be handled in our country.”
RBI Governor Sanjay Malhorta speaks at the Delhi School of Economics on Thursday. Source: Business Today
Malhorta dismissed concerns that India needs to respond to stablecoin innovation led by the United States, following the passage of the GENIUS bill in June, because India has a robust domestic digital payments infrastructure, unlike the US.
This includes the Unified Payments Interface (UPI), a 24/7 payments network, the National Electronic Funds Transfer (NEFT), which settles payments hourly and is also available 24/7, and the Real-Time Gross Settlement (RTGS) system for large transactions, Malhorta said.
The Stablecoin market is dominated by dollar-denominated tokens. Source: RWA.XYZ
The government of India regulating cryptocurrencies would mark a significant departure from its long-held anti-crypto stance and would legitimize digital assets in the world’s most populous country, spurring crypto adoption and potentially raising asset prices.
Related: Indian court steps in over WazirX XRP distribution tied to 2024 hack
Officials continue to cast doubt on “unbacked” cryptocurrencies
In October, Piyush Goyal, India’s minister of commerce and industry, said the government neither encourages nor discourages cryptocurrencies, but he also cast doubt on crypto as an asset class.
Most cryptocurrencies do not have sovereign backing or underlying assets that give them value, Goyal said.
Magazine: India mulls new crypto ban to support CBDC, Lazarus Group strikes again: Asia Express