India Signals Move Toward RBI-Backed Stablecoin Framework

India appears poised to take a significant step in its digital finance evolution, as Commerce and Industry Minister Piyush Goyal has indicated that a Reserve Bank of India (RBI)-backed stablecoin or digital currency may soon be introduced. Speaking at a roundtable in Doha, Goyal suggested that the RBI is developing an “RBI-guaranteed” digital instrument designed to support quicker, more transparent, and secure payments — a move that could redefine India’s position in the global digital asset landscape.
While the minister stopped short of formally calling the initiative a stablecoin, several local media outlets have interpreted his remarks as a signal of India’s readiness to launch a sovereign-backed digital currency. Such an initiative would align with ongoing efforts by the RBI to strengthen the country’s financial infrastructure through blockchain-based settlement systems and central bank digital currency (CBDC) trials.
RBI’s growing focus on tokenised money
The latest announcement coincides with the RBI’s upcoming pilot project for tokenised bank deposits, scheduled to begin on October 8, 2025. This pilot represents the next phase in India’s digital rupee ecosystem, focusing on tokenised representations of commercial bank deposits for use in wholesale settlements and institutional transactions. The goal is to enhance real-time settlement efficiency, reduce counterparty risks, and lay the groundwork for interoperable digital payment rails.
The RBI’s stance toward privately issued stablecoins has historically been cautious, with the central bank citing concerns around financial stability, consumer protection, and illicit flows. However, the tokenised deposit initiative and ministerial comments suggest a strategic pivot toward regulated, blockchain-native financial instruments that retain full state backing and compliance oversight.
If implemented successfully, the introduction of an RBI-backed digital currency or stablecoin-like mechanism could establish India as a leader in regulated digital money innovation. It would also signal a convergence between traditional banking systems and decentralised ledger technology (DLT), an intersection increasingly explored by central banks worldwide.
A gradual softening of India’s crypto policy stance
India’s policy approach toward cryptocurrencies and digital assets has been one of measured restraint. The government has maintained strict taxation on crypto trading and mandatory reporting requirements, yet recent commentary from both the finance and commerce ministries indicates an evolving stance. Rather than outright prohibition, the current direction appears to favor a controlled environment where digital innovation is encouraged under regulatory supervision.
Analysts believe that a sovereign-backed stablecoin or tokenised deposit system could assist bridge the gap between blockchain-based finance and traditional monetary systems. It would provide a compliant, traceable, and stable alternative to privately issued crypto assets — a key concern for regulators aiming to preserve monetary sovereignty while embracing fintech innovation.
Minister Goyal’s remarks, therefore, may mark a turning point for India’s digital asset policy. As the world’s fifth-largest economy explores regulated tokenisation and CBDC expansion, the introduction of an RBI-backed stablecoin could serve as a catalyst for mainstream blockchain adoption across both retail and institutional sectors. With the RBI preparing to pilot tokenised deposits and potentially expand its digital rupee framework, India is signaling that it intends not just to participate in the future of digital currency — but to shape it on its own terms.