The Indian government is contemplating a regulatory framework for stablecoins as part of its Economic Survey for 2025-2026, while the Reserve Bank of India (RBI) advocates for a cautious approach towards cryptocurrencies and emphasizes the importance of a central bank digital currency (CBDC), highlighting a significant policy divergence.
The annual report by India’s Ministry of Finance will ‘present its case’ regarding stablecoins, detailing key policy advice and the current economic situation, according to sources cited by the business outlet MoneyControl.
In contrast, the RBI’s Governor, Sanjay Malhotra, has reiterated the bank’s reserved stance on stablecoins. He stated during a speech at the Delhi School of Economics:
“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.”
Malhotra has dismissed the notion that India should swiftly adapt to the stablecoin developments emerging from the United States, particularly after the passage of the GENIUS bill in June, citing India’s well-established digital payments system as a solid foundation.
This infrastructure largely includes the Unified Payments Interface (UPI) for real-time transactions, National Electronic Funds Transfer (NEFT) for hourly settlements, and the Real-Time Gross Settlement (RTGS) for larger transactions.
Introducing regulations for cryptocurrencies would mark a notable shift from India’s historically negative stance and could validate digital assets in the country, potentially driving greater adoption of cryptocurrencies and influencing asset valuations.
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Continued Skepticism Regarding Non-backed Cryptocurrencies
In a statement made in October, Piyush Goyal, the commerce and industry minister of India, remarked that while the government does not actively support or discourage cryptocurrencies, he also cast doubts on the legitimacy of many cryptos as a viable asset class.
Goyal expressed concerns regarding the lack of sovereign backing for most cryptocurrencies, raising questions about their inherent value.
