The Reserve Bank of India recommends that countries prioritize the development of CBDCs rather than stablecoins.
PANews reported on January 1 that, according to Cointelegraph, the Reserve Bank of India (RBI) is urging countries to prioritize the development of central bank digital currencies (CBDCs) over privately issued stablecoins, citing concerns that the latter could affect financial stability.
In its December Financial Stability Report, the Reserve Bank of India (RBI) stated that central bank digital currencies (CBDCs) can maintain "the unity of money and the integrity of the financial system" and should continue to serve as "the ultimate settlement asset" and "the cornerstone of monetary trust." "Therefore, the RBI strongly recommends that countries prioritize the development of CBDCs over privately issued stablecoins to maintain monetary trust, safeguard financial stability, and build a faster, cheaper, and more secure next-generation payment infrastructure."
The Reserve Bank of India also pointed out that the introduction of stablecoins could create new channels of financial stability risk, especially during periods of market stress. Therefore, "countries must carefully assess the relevant risks and develop policy responses appropriate to their own financial systems."
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