India may soon inch toward a more regulated digital finance ecosystem — at least when it comes to stablecoins. According to reporting by MoneyControl, the government is considering including a regulatory proposal for stablecoins in the Economic Survey 2025–2026, the finance ministry’s flagship annual document outlining economic priorities. While the government seeks ways to integrate digital assets into the formal system, the country’s central bank remains cautious.

Government sees opportunity. Central bank urges restraint

Sources familiar with the process say the cabinet wants to introduce a proposal that would spark a national debate on how to regulate and integrate stable digital currencies into the broader economy. It marks a significant shift from India’s previously hesitant or negative stance toward cryptocurrencies.

The Reserve Bank of India (RBI), which is promoting its own central bank digital currency (CBDC), remains skeptical. RBI Governor Sanjay Malhotra emphasized the need for caution during a speech at the Delhi School of Economics, rejecting the idea that India should feel pressured by recent U.S. legislative developments, including the passage of the GENIUS Act.

Malhotra noted that India already benefits from robust digital payments infrastructure — including the 24/7 Unified Payments Interface (UPI), hourly-settlement NEFT, and RTGS for large-value transfers. Because of this, the RBI argues that the demand for stablecoins is not as urgent as in other markets.

Regulation would mark a historic shift

Should the government proceed, it would represent a major turning point for the world’s most populous nation. India has long been viewed as unfriendly to cryptocurrencies, whether due to tax burdens or public skepticism from senior officials.

Trade and Industry Minister Piyush Goyal stated last year that the government “neither supports nor bans” cryptocurrencies, but still questioned their fundamental value due to the lack of state backing or real assets behind them.

A regulatory framework for stablecoins, however, could pave the way for broader digital asset adoption. Clear rules could attract new investors, boost trust, and ultimately support price growth across major cryptocurrencies.

A divergence that could reshape global markets

The clash between government optimism and central bank caution creates a strategic tension that may shape India’s digital economy for years to come. At stake is the future of the country’s CBDC — and whether it will remain the sole officially supported digital instrument.

Whichever path India chooses will influence not only its domestic market, but also the global crypto ecosystem. If one of the world’s largest economies opens the door to stablecoins, other emerging markets may follow.

Sources:

https://www.moneycontrol.com/europe/?url=https://www.moneycontrol.com/news/business/govt-mulling-to-experiment-with-stablecoins-economic-survey-2025-26-may-bat-for-their-utility-13685065.html?utm_medium=social&utm_source=twitter&utm_campaign=regular-editorial&utm_medium=social&utm_source=twitter&utm_campaign=regular-editorial

https://cointelegraph.com/news/india-government-consider-stablecoin-framework-diverge-rbi