Stablecoin

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<div class="key-points-section">
 <b>Key Points:</b>
 <ul>
  <li>RBI's T. Rabi Sankar warns about stablecoins' risk to monetary policy.</li>
  <li>Stablecoins may weaken currency regulation, raise credit costs.</li>
  <li>Potential loss of seigniorage revenue from foreign stablecoins.</li>
 </ul>
</div>
<p>On December 12, the Deputy Governor of the Reserve Bank of India warned that stablecoins may pose risks to monetary policy and local currency stability.</p>
<p>The concerns highlight potential impacts on economic sovereignty and financial stability, emphasizing the RBI's preference for central bank digital currencies over private stablecoins.</p>
<h2 id="rbi-urges-caution-on-stablecoins-impact-on-economies">RBI Urges Caution on Stablecoins' Impact on Economies</h2>
<p>Stablecoins may elevate credit costs substantially, posing challenges for emerging economies. Currency substitution effects and monetary sovereignty risks are among the primary concerns. <strong>RBI's existing stance against private cryptocurrencies was reaffirmed</strong> at the summit, emphasizing a preference for central bank digital currencies over stablecoins.</p>
<blockquote>
 "We are very clear in our mind that stablecoins do not serve a purpose that cannot be done better with CBDC (central bank digital currency), and introducing stablecoins would create a lot of policy concerns and issues that are best avoided." - T. Rabi Sankar, Deputy Governor, Reserve Bank of India (RBI)
</blockquote>
<blockquote>
 "We are very clear in our mind that stablecoins do not serve a purpose that cannot be done better with CBDC (central bank digital currency), and introducing stablecoins would create a lot of policy concerns and issues that are best avoided." - T. Rabi Sankar, Deputy Governor, Reserve Bank of India (RBI)
</blockquote>
<h2 id="emerging-economies-face-policy-risks-from-stablecoins">Emerging Economies Face Policy Risks from Stablecoins</h2>
<p><strong>Did you know?</strong> Stablecoins have historically triggered debates over financial stability since their integration into broader markets, reflecting ongoing monetary policy challenges.</p>
<p>Ethereum (ETH) is trading at $3,247.89 with a market cap of $392.00 billion and a 12.48% market dominance, based on <a href="https://phemex.com/markets" rel="noopener noreferrer nofollow">CoinMarketCap</a> data as of December 12, 2025. Its trading volume declined by 30.51% to $23.96 billion recently. <strong>ETH's price moved up 1.71% in the past 24 hours</strong> but faced a decline over 90 days, losing 31.19%.</p>
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 <a href="https://coincu.com/wp-content/uploads/2025/12/Ethereum-daily-chart-on-1032-UTC-on-December-12-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/12/Ethereum-daily-chart-on-1032-UTC-on-December-12-2025file.jpeg" alt="ethereum-daily-chart-2175"> </a>
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  Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 10:32 UTC on December 12, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/ethereum/" rel="noopener noreferrer nofollow">CoinMarketCap</a></em>
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<p><strong>Coincu's research suggests emerging economies risk <a href="https://coincu.com/news/imf-stablecoin-risks-emerging-markets/" rel="noopener noreferrer nofollow">policy independence</a></strong> losses due to stablecoins. However, well-managed <a href="https://www.trmlabs.com/reports-and-whitepapers/global-crypto-policy-review-outlook-2025-26" rel="noopener noreferrer nofollow">central bank digital currencies</a> could balance innovation with regulation, offering a path forward. <strong>Stablecoin usage amplifies existing nuances in monetary frameworks,</strong> yet central banks remain cautious.</p>
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    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
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RBI Deputy Governor Warns of Stablecoin Risks

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