RBI Deputy Governor rules out stablecoins in India

RBI Deputy Governor T. Rabi Sankar ruled out the need for stablecoins as they do not “appear to have” a promise to pay, which is the feature of a sovereign currency, while speaking at a media event on Friday (December 12, 2025) in Mumbai.

Stablecoins lack the basic attributes of money, their advantages are neither unique nor unambiguous, and their risks are all too real,” adding that they could lead to price volatility and reduce the capability of the central bank to conduct monetary policy.

Referring to the Cryptocurrency Manifesto, a document which explains the philosophy of the private currency, he reminded that bitcoin was only a tool to demonstrate the technology and did not have any fundamental value. The value of cryptocurrency is fundamentally speculative he said drawing parallels to the tulip mania in 17th century.

Mr. Sankar pointed to the backing that sovereign currency had from global central banks and the International Monetary Fund (IMF).

The Deputy Governor’s stand comes two months after the Union Finance Minister hinted towards a possible shift in India’s cryptocurrency policy, saying that countries would have to “prepare to engage” with stablecoins, whether they welcome the change or not. Currently, cryptocurrency is not legal but is subject to taxes on transactions that involve it.