India #Stablecoin Debate Heats Up
Capital Markets vs Payments Industry
The future of stablecoins in India is becoming a major point of discussion. At the ET Financial Inclusion Summit in Mumbai, leaders from capital markets and the payments ecosystem shared sharply different views on how India should approach stablecoin regulation.
Capital market experts raised concerns about risks such as volatility, misuse, and potential financial system disruption. Their view is that India must move with caution, focus on strong regulation, and prioritise financial stability before enabling large scale adoption.
On the other hand, the payments industry highlighted the benefits of stablecoins for India’s fast growing digital economy. They believe stablecoins can improve cross border payments, support tokenised assets, and expand India’s position in global fintech innovation. Their message was clear innovation should not be blocked but guided with clear rules.
Goldman Sachs Timothy Grady said global institutions are increasingly positive about tokenised products and stablecoins, noting their role in driving financial integration. Bank of America Priya Parmar added that regulatory clarity in India could attract significant institutional activity.
RBI Deputy Governor Rajesh Ranjan emphasised the need for prudence and reminded that payment infrastructures must prioritise safety over experimentation. Meanwhile, global markets including the US and EU are moving ahead with their own stablecoin frameworks, creating pressure for India to define its position.
India’s upcoming stance will influence the future of crypto linked payments, tokenised markets, and digital finance. The debate highlights a key question for policymakers Should India take a cautious regulatory path or adopt an innovation friendly model with strong safeguards
The outcome could shape India’s long term role in the global digital asset economy.
Source Times of India
