Reserve Bank of India Promotes CBDCs Over Private Stablecoins on 1 January 2026

On 1 January 2026, the Reserve Bank of India used its latest financial stability report to argue that central bank digital currencies should form the backbone of future digital payments instead of private stablecoins. The central bank warned that stablecoins, as liabilities of private issuers, could create new channels of financial instability during periods of stress, while CBDCs can offer instant, low-cost, programmable settlement backed by sovereign money. India's authorities remain cautious on crypto overall, even as institutions in the U.S., Europe, and parts of Asia increasingly experiment with stablecoins for faster transfers.