India’s government is weighing the introduction of a stablecoin regulatory framework, marking a rare divergence from the Reserve Bank of India (RBI), which continues to urge caution toward crypto assets.
According to a report by MoneyControl, officials familiar with the matter said the Ministry of Finance may include stablecoin regulation proposals in the Economic Survey 2025–2026, the government’s annual policy document outlining economic priorities and future reforms.
If adopted, this shift would represent India’s most significant move yet toward legitimizing digital assets, after years of mixed signals ranging from tax penalties to broad skepticism.
RBI Maintains Resistance, Pushes for CBDC
Speaking at the Delhi School of Economics, RBI Governor Sanjay Malhotra reiterated the central bank’s firmly cautious stance:
“We have a very cautious approach towards crypto… The government has to take a final view.”
Malhotra noted that a previously formed working group will ultimately decide how India addresses digital assets, but stressed that stablecoin innovation abroad—particularly in the United States following the GENIUS bill—does not pressure India to make rapid reforms.
The RBI argues that India’s existing payments ecosystem already offers world-class efficiency. Malhotra highlighted the Unified Payments Interface (UPI), NEFT, and RTGS, describing them as robust enough to reduce the domestic need for privately issued stablecoins.
Regulation Would Mark a Major Policy Shift
If India moves forward with a stablecoin framework, it would signal a notable departure from its long-held anti-crypto posture. Such regulation could:
- provide legal clarity for exchanges and fintechs
- spur domestic adoption
- boost liquidity flows into global stablecoin markets
- influence digital-asset valuations in emerging markets
Given India’s population scale, even moderate regulatory openness could reshape regional crypto demand.
Skepticism Toward “Unbacked” Crypto Remains
Government officials remain wary of non-asset-backed cryptocurrencies. Commerce and Industry Minister Piyush Goyal, speaking in October, said the government neither encourages nor discourages crypto but emphasized that most tokens lack sovereign backing or underlying assets.
The distinction between asset-backed stablecoins and volatile cryptocurrencies appears central to India’s evolving policy debate.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.