The Governor of the Indian Central Bank proposed accelerating the adoption of government-backed stablecoins worldwide.
Date: 2025-10-16 Author: Henry Casey Categories: IN WORLD
During the annual meeting of the World Bank Group and the International Monetary Fund (IMF) in Washington, Reserve Bank of India (RBI) Governor Malhotra expressed concern about the impact of cryptocurrencies on monetary policy and the fight against money laundering. He stated that independent digital assets pose risks to the control of financial flows, while central bank digital currencies (CBDCs) offer all the advantages but are completely under government control.
He proposed that all countries implement their own CBDCs as soon as possible to ensure compatibility between national financial systems. Malhotra noted that if some countries decide not to issue their own digital currencies, international settlements with them will become more complex and less efficient.
"A CBDC is a fiat currency, just in digital form, and it can function as a stablecoin while remaining under regulatory oversight. If central banks work together, we can create a fully-fledged ecosystem of government stablecoins," the RBI governor stated.
The Reserve Bank of India has been testing a digital rupee for several years in two formats: retail (for ordinary citizens) and wholesale (for banks and large organizations). According to Malhotra, the country's domestic payments system is stable, but CBDCs could significantly improve international settlements, making them faster and more transparent.
Furthermore, Malhotra emphasized that the use of digital currency reduces reliance on cash and can improve the efficiency of the financial sector. He added that India aims to become a leader in the adoption of digital currencies, creating conditions for secure and transparent cross-border transactions.
Indian Commerce Minister Piyush Goyal also supported the initiative, noting that a digital rupee would speed up transactions and enhance the national economy's resilience. He believed that CBDCs could facilitate citizens' access to modern financial services and reduce business costs.
Malhotra concluded his speech by calling on other countries to more actively pursue the creation of central bank digital currencies. He emphasized that only through international cooperation can the effective implementation of government-backed stablecoins be achieved, which will become a reliable instrument in the global financial system of the future.
