India’s central bank urges countries to prioritize CBDCs over stablecoins

India's central bank is advocating for countries to prioritize Central Bank Digital Currencies (CBDCs) over stablecoins. So far, only three CBDCs have been successfully launched globally: in Nigeria, the Bahamas, and Jamaica, though many jurisdictions are considering their implementation. CBDCs, being state-issued digital currencies, hold the potential to enhance the security of financial systems and improve the efficiency of transactions. This is expected to increase the reliability of cross-border payments and transactions, especially in combating the volatility of rapidly growing cryptocurrencies. The promotion of CBDCs may elevate monetary policy to a new level and support the advancement of the digital economy. However, as different countries’ approaches and frameworks develop, the speed at which CBDCs gain traction remains uncertain. Additionally, discussions on the roles of stablecoins versus CBDCs will be crucial moving forward.