India resists full framework for stablecoins prioritising rupee dominance

India is unlikely to introduce a comprehensive regulatory framework for stablecoins, aligning with its policy that prioritises the rupee. According to a Reuters-backed analysis, the government fears that regulated stablecoins could dilute currency sovereignty or become systemic. This stance follows earlier comments from the Reserve Bank of India regarding potential competition between private digital tokens and a central-bank digital currency. Markets are interpreting the stance as cautious for crypto-asset adoption but favourable for rupee and banking stability.