The Reserve Bank of India supports CBDC and opposes stablecoins, leading to increased divergence in global central bank policies.

The Reserve Bank of India recently released a Financial Stability Report, which affirms the robustness of the banking system while explicitly supporting the prioritized development of central bank digital currencies (CBDCs) by various countries, and reiterates concerns about stablecoins. This stance reflects policy divergence among major global central banks in the digital currency field and also indicates increasing policy pressures faced by stablecoins.

Core Content of the Central Bank Report

Improvement in Financial Stability Indicators and Risk Differentiation

According to the latest report from the Reserve Bank of India, the overall risk in India’s banking system is manageable:

It is noteworthy that while the non-performing loan ratio of traditional banks is expected to continue improving, risks in non-banking financial institutions (NBFCs) are rising. This differentiation reflects structural differences within India’s financial system.

Clear Stance of the Central Bank on Stablecoins

In the report, the Reserve Bank of India reaffirmed its existing position on stablecoins: emphasizing that stablecoins pose risks to macro-financial stability. This is not a temporary warning but a consistent policy stance of the central bank. In contrast, the report explicitly states support for countries to prioritize the development of CBDCs to maintain financial order.

Logic Behind Policy Positions

Policy Differences Between CBDCs and Stablecoins

This choice by the central bank is not accidental, reflecting the fundamental differences between the two forms of digital currency from a financial regulation perspective:

• CBDCs are issued and managed directly by the central bank, with financial risks fully controllable, aligning with the central bank’s need to maintain financial order.
• Stablecoins are issued by private entities, claiming to be pegged to fiat currencies but lacking sufficient asset backing and regulatory oversight. The central bank considers this a threat to financial stability.

Common Concerns Among Global Central Banks

The stance of the Reserve Bank of India aligns with that of international financial stability organizations such as the Financial Stability Board (FSB). Over the past two years, many countries’ central banks have increased regulation of stablecoins and accelerated CBDC projects. This reflects a global effort by central banks to reassert control over the financial system through technological means.

Potential Impact on the Cryptocurrency Market

Short-term Policy Signals

The Reserve Bank of India’s statements are unlikely to directly change the market usage of stablecoins but will reinforce the commitment of various central banks to advance CBDCs. This means that the future competitive landscape in digital currencies will become clearer: CBDCs represent the officially endorsed future direction, while stablecoins face increasingly strict regulation.

Long-term Trend Outlook

This policy divergence may lead to coexistence of two outcomes: on one hand, the promotion of CBDCs will accelerate the modernization of digital payment infrastructure; on the other hand, although stablecoins are under pressure, they may still retain some market space in specific scenarios such as cross-border payments, but will be subject to stricter compliance requirements.

Summary

The Reserve Bank of India’s Financial Stability Report reflects a common choice among global central banks: prioritizing the development of CBDCs to maintain financial order while preventing systemic risks posed by stablecoins. This is not only a technological decision but also a reconfiguration of financial power. For the cryptocurrency market, this indicates that the policy environment is evolving toward an “official digital currency first” approach, and the future of stablecoins will need to find room for survival within a more regulated framework.