RBI tells Parliament a ban on foreign-currency stablecoins remains an option in July 2026
AI Market Summary
The RBI told India's Parliamentary panel that banning foreign-currency stablecoins like USDT/USDC remains a live option, citing growing onshore crypto participation and systemic-risk concerns. Even without a formal ban, the signal raises the probability of tighter banking rails, higher compliance friction, and reduced stablecoin liquidity for Indian exchanges and fintechs. Near term, this can widen INR-crypto spreads and impair stablecoin-based treasury and settlement flows.
Impact level
● High
Affected assets
BTC/USDT+1.02%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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In early July 2026, the Reserve Bank of India (RBI) told Parliament’s Standing Committee on Finance that a ban on foreign-currency stablecoins such as USDT and USDC remains a viable option under “careful consideration.” The central bank pointed to registry figures covering 54 FIU-registered crypto service providers and about 3.93 crore KYC-verified users, with onshore crypto assets valued at around ₹20,436.59 crore. With global stablecoin market capitalisation at about $311.279 billion, the RBI said such tokens could weaken monetary policy transmission, fragment payments and raise financial stability risks. Banking access and compliance frictions are already tightening, and while no formal ban has been issued, the likelihood is seen as higher.
