Policy sovereignty UNDER THREAT by Stablecoins? Indian Official Reports!

Stablecoins are an existential threat to policy sovereignty and are only useful to a few countries, said Reserve Bank of India Deputy Governor Rabi Sankar at an event, according to the local news platform The Hindu.

Given the concerns around stablecoins, central bank digital currencies (CBDC) are better "stable solutions" for every country, Sankar said.

The number two at the Indian central bank said that stablecoins are beneficial to economies such as the U.S. and Europe, to whose currencies the stablecoins may be linked.

But in a country like India, they could potentially replace the use of the rupee in the local economy, Sankar said, thanks also in part to the transfer of profits made by the government by issuing currency to private players.