Sanjay Malhotra, Governor of the Reserve Bank of India (RBI), has called on central banks around the world to adopt Central Bank Digital Currencies (CBDCs) over stablecoins for cross-border payments.
Speaking at the annual meeting of the World Bank and International Monetary Fund (IMF) in Washington, DC, Malhotra said CBDCs offer greater benefits than private digital currencies. In a discussion with Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, he stated,
“Unless other countries also adopt CBDC, we are not going to see the benefits of CBDC insofar as cross-border payments are concerned. So, I would urge all those present from central banks and other jurisdictions that we need to promote the CBDC, because this has huge advantages over stablecoins.”
Malhotra explained that CBDCs, being government-backed, retain the “singleness of money” and protect the “integrity of money.” He stressed that their global adoption is key to realising smoother and more secure international transactions.
The RBI Governor noted that India’s domestic payment systems are already fast, low-cost, and efficient.
“For India, domestic payments are not an issue. To that extent, we do not need a CBDC or a stablecoin for local payments,” he said, adding that the focus of India’s CBDC project is cross-border usage.
Currently, the RBI is running pilot programs for both retail and wholesale CBDCs. Malhotra acknowledged the role of cryptocurrencies and stablecoins in innovation, however, warned that they are not suitable for core monetary systems due to risks to policy control and financial stability. According to him: “We believe in India, it is the CBDC and not crypto… We would rather promote CBDC than any other form of crypto, because CBDC has all the advantages.”
His remarks came shortly after Finance Minister Nirmala Sitharaman highlighted how stablecoins and similar innovations are reshaping global finance.
However, Malhotra also clarified that while the RBI does not target a specific exchange rate for the rupee, it will intervene to maintain market stability. He described India’s economic growth as “phenomenal,” projecting potential upside to the RBI’s 6.8% growth forecast for 2025– 2026 if global trade conditions improve.
Also Read: BitMine Expands Eth Holdings with $417 Million Purchase Despite Market Volatility
