Why CBDCs should surpass stablecoins – RBI's clear message

The global debate over digital money is increasingly divided: on one side are centrally controlled CBDCs, and on the other private stablecoins. The Reserve Bank of India (RBI) has now clearly positioned itself and calls on nations worldwide to give priority to CBDCs – a signal that catches the attention of the central banking community.

The Current CBDC Balance Sheet: Less Than Expected

So far, only three countries have successfully implemented digital central bank currencies: Nigeria, the Bahamas, and Jamaica. While many other jurisdictions are seriously evaluating CBDCs, it becomes clear: the path from theory to reality is longer than hoped. This is where the RBI steps in – pressure is mounting to act more quickly.

RBI’s Core Argument: Monetary Power and Trust Remain Central

In its Financial Stability Report from December, the RBI clearly states what it’s really about. CBDCs are not only technically superior but embody the principle that the unit of money and financial system integrity are guaranteed by a trusted institution. Unlike private stablecoins – which promise efficiency but fragment control – a CBDC positions itself as a “final settlement medium” and as a trust anchor in times of crisis.

The Hidden Concern: Financial Stability Under Pressure

Behind the RBI’s position lies a serious concern: if private issuers massively issue stablecoins, parallel monetary systems emerge that could spiral out of traditional monetary policy control. The risk? Systemic vulnerability, fewer control options, unpredictable market dynamics. CBDCs, on the other hand, guarantee central banks the insight and control they need.

CBDCs as Infrastructure of the Future

The RBI makes a clear point: the next generation of payment systems must be faster, cheaper, and more secure – but also regulatable. CBDCs meet this triple requirement, while stablecoins often cannot maintain this balance.

Conclusion: The RBI’s position is not nostalgic but strategic. It’s about sovereignty over the money supply and stability of the financial system – two assets that central banks worldwide will not relinquish.