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

According to Financefeeds, T. Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), has made it clear that India will not adopt the U.S. "GENIUS Act" or any other G7 country's stablecoin regulatory framework. The RBI believes that dollar-pegged stablecoins pose a fundamental threat to India's monetary sovereignty, potentially leading to "dollarization" and undermining the effectiveness of domestic monetary policy.

The Indian central bank emphasizes that there are already efficient digital payment systems in the country (UPI, RTGS, NEFT), and there is no need for private stablecoins. It will continue to advance its central bank digital currency (CBDC) pilot project for the electronic rupee as the preferred direction for the application of blockchain technology. Although the Ministry of Finance has hinted at possibly considering a stablecoin framework, the RBI remains committed to prioritizing domestic considerations.