The Reserve Bank of India suggests that countries prioritize the development of CBDCs over stablecoins

According to Cointelegraph, the Reserve Bank of India (RBI) has urged countries to prioritize the development of Central Bank Digital Currencies (CBDCs) over privately issued stablecoins, citing concerns that the latter could affect financial stability.

In its December Financial Stability Report, the Reserve Bank of India pointed out that CBDCs can maintain "the singularity of currency and the integrity of the financial system," and should continue to serve as "the ultimate settlement asset" and "the cornerstone of trust in currency." "Therefore, the Reserve Bank of India strongly recommends that countries prioritize the development of CBDCs over privately issued stablecoins to maintain trust in currency, ensure financial stability, and build a faster, cheaper, and safer next-generation payment infrastructure." The Reserve Bank of India also noted that the introduction of stablecoins could create new channels for financial stability risks, especially during periods of market stress. Therefore, "countries must seriously assess the associated risks and develop policy responses suitable for their own financial systems."