While the Indian government may consider stablecoin regulation in its 2025-2026 Economic Survey, the Reserve Bank of India (RBI) is taking a “cautious” approach to cryptocurrencies and pushing ahead with central bank digital currencies (CBDCs), revealing a divergence in policy recommendations.
The government plans to “present its case” for stablecoins in an annual report published by India’s Ministry of Finance outlining key policy recommendations and economic conditions, Business newspaper Money Control reported, citing officials familiar with the matter.
However, RBI Governor Sanjay Malhotra said the central bank continues to seek a “cautious” approach to stablecoins. Speaking at the Delhi School of Economics on Thursday, he said:
“We are taking a very cautious approach to cryptocurrencies because of the various concerns. Of course, the government has to give a final say. There is a working group that was established earlier that will make the final decision on how cryptocurrencies, if any, are to be treated in our country.”
RBI Governor Sanjay Malhorta will speak at the Delhi School of Economics on Thursday. sauce: today’s business
Malhorta dismissed concerns that India will need to adapt to the US-led stablecoin innovation following the passage of the GENIUS bill in June, as India has a strong domestic digital payments infrastructure unlike the US.
These include the Unified Payments Interface (UPI), a 24/7 payment network, the National Electronic Funds Transfer (NEFT), which settles payments hourly and is 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. sauce: RWA.XYZ
The Indian government’s regulation of cryptocurrencies would be a significant departure from its long-held anti-crypto stance, legalizing digital assets in the world’s most populous country, and potentially boosting crypto adoption and boosting asset prices.
Related: Indian court intervenes over WazirX XRP distribution linked to 2024 hack
Officials continue to question ‘unbacked’ cryptocurrencies
Piyush Goyal, India’s Minister of Commerce and Industry, said in October that the government neither encourages nor discourages cryptocurrencies, but cast doubt on cryptocurrencies as an asset class.
Goyal said most cryptocurrencies have no government backing or underlying assets to give them value.
magazine: India considers new crypto ban to support CBDC, Lazarus Group strikes again – Asia Express
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