The Reserve Bank of India rejects G7 stablecoin regulatory model, sticking to monetary sovereignty

ChainCatcher reports that, according to Financefeeds, Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar explicitly stated that India will not adopt the US “GENIUS Act” or other G7 country stablecoin regulatory frameworks. RBI believes that dollar-pegged stablecoins pose a fundamental threat to India’s monetary sovereignty, potentially leading to “dollarization” and weakening the effectiveness of the country’s monetary policy. The Reserve Bank of India emphasized that there are already efficient digital payment systems (UPI, RTGS, NEFT) domestically, and there is no need for private stablecoins. It will continue to promote its own central bank digital currency (CBDC) pilot project, the digital rupee, as the preferred direction for blockchain technology applications. Although the Ministry of Finance hinted at the possibility of considering a stablecoin framework, RBI remains committed to prioritizing domestic interests.