Former executive director of the Reserve Bank of India, G. Padmanabhan, emphasized the need for a clear stance from the Indian government on stablecoins, cautioning against similar uncertainty experienced with cryptocurrencies.
Importance of a Clear Stance on Stablecoins
G. Padmanabhan, speaking at a prelude event for the Global Fintech Festival 2025, stressed that "stablecoin is quite a different proposition from crypto," adding that the Indian government needs to take a position on this matter quickly.
Government's Approach to Cryptocurrencies
While the government considers stablecoins separately, it remains cautious about cryptocurrencies. Recent government documents reveal that India does not plan to create a full legal framework for crypto, opting instead for partial oversight due to systemic risk concerns.
Need for Stablecoin Regulation
Padmanabhan noted that clear rules around stablecoins will assist India in advancing digital payments and aligning with global standards. He highlighted the importance of coordinating strategies with international developments.
Padmanabhan's warnings underline the urgency for India to establish regulations for stablecoins to safeguard its financial system and interests.
