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Government Reportedly Mulling Stablecoin Adoption in Potential Policy Shift Even as RBI Flags Concerns

Government Reportedly Mulling Stablecoin Adoption in Potential Policy Shift Even as RBI Flags Concerns

Government evaluates limited stablecoin use as part of its policy review while balancing regulatory caution.

Written by Rahul Dhingra, Edited by David Delima | Updated: 21 November 2025 17:46 IST

Government Reportedly Mulling Stablecoin Adoption in Potential Policy Shift Even as RBI Flags Concerns

Photo Credit: Unsplash/André François McKenzie

Policy review places stablecoins under scrutiny as India assesses digital asset options

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Highlights

Finance ministry examines specific stablecoin use cases
Review follows growing global interest in tokenised payments
RBI maintains cautious view on private digital tokens

In the upcoming Economic Survey 2025-26, the central government is preparing to explore the use of stablecoins, according to a report. Officials said that the survey may propose limited experimentation with stablecoins and could outline potential use cases for them as payment instruments in select scenarios. At a time when India is still working on its approach to digital assets and assessing how blockchain-based instruments might fit into the nation's larger payments and financial architecture, such a move would be considered an early policy shift.

Stablecoin Utility Being Studied as Part of Wider Digital Finance Review

A Moneycontrol report indicates that the government is currently studying the possibility of incorporating stablecoins into India's broader digital payment system. When it comes to cryptocurrencies, stablecoins are a unique type of digital asset. Their value is tied to something else, like a product or a fiat currency (like the US dollar). Unlike other cryptocurrencies like Bitcoin and Ethereum, which are extremely volatile, their primary goal is to maintain a stable price.

Officials have all mentioned potential benefits of cross-border settlements, faster transaction processing, and improved capital efficiency. Since there is currently no dedicated regulation for stablecoins in India, any change would require a defined framework covering issuer obligations, operational safeguards, and compliance standards across the financial system.

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The Reserve Bank of India's (RBI) aspiration for a sovereign digital rupee continues to influence the country's current stance on digital currencies. In October, Union Minister for Commerce and Industry, Piyush Goyal, stated that the government supported the introduction of a digital currency issued by the RBI.

Contrary to privately issued stablecoins, this framework has established the CBDC as the main digital asset backed by the government. As a result, the ongoing evaluation represents an effort to think about how both systems might coexist in a regulated setting.

If the proposal moves forward, officials are expected to prepare a discussion paper outlining use cases, safeguards, and issuer-level requirements. Any framework's adoption would depend on how banks, payment processors, and market players react to the suggested model.

Until then, India's evolving view on stablecoins remains a crucial point in the country's digital asset strategy and will give direction towards how emerging technologies are incorporated into the country's financial systems.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto in India, stablecoins, CBDC

Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More