The Reserve Bank of India rejects the G7 stablecoin regulatory model, upholding monetary sovereignty

ChainCatcher news, according to Financefeeds, T. Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), made it clear that India will not adopt the US "GENIUS Act" or other G7 countries' stablecoin regulatory frameworks. The RBI believes that US dollar-pegged stablecoins pose a fundamental threat to India's monetary sovereignty, potentially leading to "dollarization" and weakening the effectiveness of domestic monetary policy.

The Indian central bank emphasized that the country already has efficient digital payment systems (UPI, RTGS, NEFT), making private stablecoins unnecessary, and will continue to advance its own central bank digital currency (CBDC) e-rupee pilot project as the preferred direction for blockchain technology applications. Although the Ministry of Finance has hinted at possibly considering a stablecoin framework, the RBI still insists on being guided by domestic priorities.