Stable coins Bigger Threat To Indian Economy Than Cryptocurrencies?
RBI Dy. Governor T. Rabi Sankar’s comments that stablecoins present a bigger threat to economic stability than other cryptocurrencies has divided experts; some have disagreed, while some have supported him
RBI Dy. Governor T. Rabi Sankar has said that stablecoins present a bigger threat to economic stability than other cryptocurrencies. He also cited a need for central bank digital currency (CBDCs) to catch up with a boom in digital payments. Sankar was speaking at a webinar organised by the Indian Council for Research on International Economic Relations (ICRIER).
He said that introducing a CBDC would help avoid such a scenario. “From the point of view of dollarisation, stable currency is something that we will have to deal with far more seriously,” he said.
Stablecoins enable investors to keep money in their digital wallets that is less volatile than bitcoin, giving them one less reason to need a bank account.
For now, we wait and see. The speed at which this unnerving risk has emerged is certainly a concern.
Written By- Shriyansh Jain