The Reserve Bank of India reiterated that the risks of stablecoins outweigh their benefits and advocated for the priority development of CBDCs.
TL;DR
The Reserve Bank of India warns that stablecoins pose greater risks than benefits to financial stability and urges countries to focus on developing central bank digital currencies instead.
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According to a Reuters report by Foresight News , the Reserve Bank of India (RBI) reiterated its concerns about the global adoption of stablecoins in its latest Financial Stability Report, stating that the risks to macroeconomic financial stability posed by stablecoins outweigh their supposed benefits. The RBI maintains a cautious stance on crypto assets, including stablecoins, and "strongly advocates" that countries should prioritize the development of central bank digital currencies (CBDCs) rather than privately issued stablecoins to maintain financial stability and safeguard the foundation of trust in currencies.