Bank of India rejects G7 stablecoin regulation model and sticks to monetary sovereignty

Comparative news, according to Financefeeds, Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar made it clear that India will not adopt the US “GENIUS Act” or other G7 national stablecoin regulatory frameworks. The RBI believes that dollar-linked stablecoins pose a fundamental threat to India's monetary sovereignty and may lead to “dollarization” and weaken the effectiveness of the country's monetary policy.

The Bank of India emphasized that the country already has an efficient digital payment system (UPI, RTGS, NEFT), does not require private stablecoins, and will continue to promote its central bank digital currency (CBDC) electronic rupee pilot project as the preferred direction for blockchain technology applications. Despite hints from the Treasury that a stablecoin framework might be considered, the RBI insisted on domestic priorities as its guiding principle.