Deputy Governor of the Reserve Bank of India: Stablecoins pose a "survival threat" to policy sovereignty

ChainCatcher news, RBI Deputy Governor Rabi Sankar stated at an event that stablecoins pose an existential threat to policy sovereignty and are only useful for a few countries. Sankar mentioned that considering the concerns regarding stablecoins, CBDCs are a better stable solution for every country. Sankar stated, "If large stablecoins are pegged to some other currency, there is a risk of dollarization."

At the same time, he expressed concerns about the potential impact of stablecoins on India's capital regulation or monetary policy. "We must be very cautious in allowing such instruments… Based on past experiences from other countries, this is an existential threat to policy sovereignty."