Stablecoins in India: adoption, risks and RBI’s CBDC
Why in the news
Unregulated stablecoins are gaining ground in India while the RBI tests its own digital currency.
Key facts
- Private crypto designed to curb volatility; used in trading and cheap, instant remittances.
- Indians favour them for global acceptance and faster transfers than banks.
| Angle | Detail |
|---|---|
| Global rules | US GENIUS Act (2025) |
| Warning | TerraUSD collapse (2022) erased $60 billion |
| Indian risks | No legal recognition or customer protection; peg or issuer failure |
| RBI answer | CBDC concept note (2022), now in pilots |
About the CBDC
- Sovereign-backed digital cash offering trust, security and programmability.
- Meant to coexist with bank deposits and UPI.