the Reserve Bank of India (RBI) urges countries to prioritize the development of central bank digital currencies (CBDCs) rather than privately issued stablecoins, citing concerns that the latter could impact financial stability.

In its December Financial Stability Report, the Reserve Bank of India stated that central bank digital currencies can maintain the "singularity of currency and the integrity of the financial system" and should continue to serve as the "final settlement asset" and the "cornerstone of monetary trust." "Therefore, the Reserve Bank of India strongly recommends that countries prioritize the development of central bank digital currencies over privately issued stablecoins to preserve monetary trust, ensure financial stability, and build a faster, cheaper, and safer next-generation payment infrastructure." The Reserve Bank of India also pointed out that the introduction of stablecoins may bring new channels of financial stability risks, especially during periods of market stress. Therefore, "countries must carefully assess the associated risks and formulate policy responses suitable for their own financial systems."