India's central bank has taken a firm stance on digital currency policy. In its December financial stability report, regulators emphasized that central bank digital currencies (CBDCs) should take precedence over privately issued stablecoins. The rationale centers on protecting financial system integrity—a concern that resonates across emerging markets grappling with unregulated crypto adoption. This position reflects a broader global debate: as stablecoins gain traction for cross-border payments and DeFi integration, central banks worry about systemic risks and monetary control. India's move signals that institutional players will likely push CBDC infrastructure development, potentially reshaping how digital assets compete in the payment ecosystem.