India May Introduce Stablecoin Rules as Government and RBI Take Different Paths

• India is considering adding stablecoin regulations in its 2025–2026 Economic Survey.
• The RBI continues to warn against crypto and prefers a cautious approach.
• The RBI believes India already has strong digital payment systems like UPI, NEFT, and RTGS.
• Government regulation could mark a major shift from India’s anti-crypto history.
• Some officials still question the value of “unbacked” cryptocurrencies.

India’s government is exploring the idea of introducing a stablecoin regulatory framework, which may be presented in the Economic Survey for 2025–2026. This potential move highlights a growing difference between the Indian government and the Reserve Bank of India (RBI) when it comes to the future of digital assets.

According to a report from MoneyControl, the Ministry of Finance plans to “present its case” for stablecoins in its annual Economic Survey. This report plays a major role in shaping government policy each year, so including stablecoin regulation would signal a serious shift in India’s approach toward crypto.

For years, India has taken a tough stance on digital assets. The country introduced high taxes on crypto trading, placed strict reporting rules on exchanges, and sent mixed messages about the legal status of crypto. Because of this, investors and builders have often waited for clearer regulations. The idea that stablecoins might now be considered for a formal framework is a major development.

RBI’s Cautious Stand

While the government is opening the door to possible regulation, the RBI continues to express strong concerns about crypto. RBI Governor Sanjay Malhotra recently spoke at the Delhi School of Economics, where he repeated the central bank’s cautious view.

He explained that crypto carries many risks related to financial stability, consumer protection, and the broader economy. Malhotra added that although the government will make the final decision, an internal working group is still studying how crypto should be handled in India.

The RBI has long supported the use of a central bank digital currency (CBDC) instead of private cryptocurrencies. The bank believes a CBDC would offer the benefits of digital assets while avoiding the volatility and risks seen in the crypto market.

India’s Strong Digital Payment Systems

Malhotra also addressed the growing global push for stablecoins, especially in countries like the United States. He said India does not need to rush into stablecoin adoption simply because other countries are doing so.

One of his key arguments is that India already has a strong and fast digital payment ecosystem. Systems like the Unified Payments Interface (UPI), the National Electronic Funds Transfer (NEFT), and the Real-Time Gross Settlement (RTGS) have transformed digital payments in India. With these systems operating 24/7, India has little need for stablecoins as a replacement for everyday payments.

If the government does move forward with stablecoin regulations, it would represent one of the biggest changes in India’s crypto policy. Allowing stablecoins under a regulatory framework could:

• Legitimize digital assets in India
• Encourage large companies to explore blockchain solutions
• Boost investor confidence
• Increase crypto adoption among India’s massive population

It could also push crypto prices higher as India is one of the largest and fastest-growing digital markets in the world.

Concerns About Unbacked Crypto Still Remain

Despite this potential progress, some government officials still question the value of crypto. In October, Commerce and Industry Minister Piyush Goyal said the government neither encourages nor discourages cryptocurrencies. However, he pointed out that most cryptocurrencies do not have sovereign backing or real underlying value, making them risky as assets.

His comments show that while stablecoins may find a path to regulation, the government may remain skeptical of other types of crypto, especially those without clear asset backing.

Final Thought

India is at a key moment in its crypto journey. The government is showing interest in stablecoin regulation, while the RBI continues to warn against the risks of crypto. How these two positions align—or clash—will determine India’s future in the global digital economy. If stablecoin rules are introduced, it could open the door to a more open and regulated crypto market in one of the world’s most influential countries.