India's government is preparing to include stablecoin regulatory proposals in its Economic Survey 2025-2026, while the Reserve Bank of India maintains a cautious stance on digital assets. This divergence reveals conflicting policy approaches between the nation's finance ministry and central bank on crypto regulation.
Government's Push for Stablecoin Frameworks
The government will present its case for stablecoin frameworks in the annual report published by India's Ministry of Finance, according to business publication MoneyControl, citing an official familiar with the matter. The Economic Survey outlines key policy recommendations and provides analysis of the country's economic state.
Reserve Bank of India's Cautious Stance
RBI Governor Sanjay Malhotra stated the central bank continues to advocate a cautious approach to crypto during remarks at the Delhi School of Economics on Thursday. He noted various concerns surrounding digital assets and emphasized that final decisions rest with the government. A working group previously established will determine how crypto should be handled in India, if at all.
Comparison with US Digital Payment Systems
Malhotra dismissed arguments that India needs to respond to U.S. stablecoin innovation, particularly following passage of the GENIUS bill in June. He pointed to India's robust domestic digital payments infrastructure as superior to American systems. The country operates the Unified Payments Interface, a 24/7 payments network, along with the National Electronic Funds Transfer system that settles payments hourly and the Real-Time Gross Settlement system for large transactions.
Potential Impact of Regulatory Shift
Government adoption of cryptocurrency regulations would mark a significant shift from India's longstanding opposition to digital assets. Such a move would legitimize crypto in the world's most populous nation, potentially spurring adoption and impacting asset prices across global markets.
Skepticism Towards Unbacked Cryptocurrencies
Officials continue to express skepticism about cryptocurrencies lacking sovereign backing. Commerce and Industry Minister Piyush Goyal stated in October that the government neither encourages nor discourages crypto. He questioned the asset class by noting most cryptocurrencies lack sovereign backing or underlying assets that provide intrinsic value.
Global Stablecoin Market and India's Role
The stablecoin market remains dominated by dollar-denominated tokens. India's potential entry into stablecoin regulation could reshape regional digital asset frameworks and influence neighboring countries' policy decisions. The government's Economic Survey release will clarify whether stablecoin proposals advance despite central bank resistance to broader crypto adoption.