India's Economic Survey May Address Stablecoin Regulations Amid RBI's Cautious Stance

According to Cointelegraph, the Indian government is considering the inclusion of stablecoin regulations in its Economic Survey for 2025-2026, while the Reserve Bank of India (RBI) maintains a cautious approach towards cryptocurrencies and advocates for a central bank digital currency (CBDC). This reflects a divergence in policy recommendations between the government and the central bank. The Ministry of Finance is expected to present its case for stablecoins in the annual report, which outlines key policy recommendations and the state of the economy. This information was reported by MoneyControl, citing an official familiar with the matter. RBI Governor Sanjay Malhotra emphasized the central bank's cautious stance on stablecoins during a speech at the Delhi School of Economics. He stated, "We have a very cautious approach towards crypto because of various concerns that we have. Of course, the government has to take a final view. There is a working group which was set up earlier, and they will make a final call as to how, if at all, crypto is to be handled in our country." Malhotra dismissed concerns that India needs to respond to stablecoin innovation led by the United States, following the passage of the GENIUS bill in June, citing India's robust domestic digital payments infrastructure, which includes the Unified Payments Interface (UPI), National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS) system. The potential regulation of cryptocurrencies by the Indian government would mark a significant shift from its previous anti-crypto stance, potentially legitimizing digital assets in the world's most populous country. This could spur crypto adoption and potentially increase asset prices. However, officials continue to express skepticism about "unbacked" cryptocurrencies. In October, Piyush Goyal, India's minister of commerce and industry, stated that the government neither encourages nor discourages cryptocurrencies, but he also questioned the value of crypto as an asset class, noting that most cryptocurrencies lack sovereign backing or underlying assets that provide them with value.