Former RBI Director Calls for Clear Stablecoin Regulation in India

G Padmanabhan, former executive director of the Reserve Bank of India, has urged the government to clarify its stance on stablecoins, warning that regulatory ambiguity could mirror the uncertainty surrounding cryptocurrencies. Speaking at a Global Fintech Festival 2025 event, Padmanabhan emphasized the need for swift action, noting India must align with global trends, particularly after the US advanced its e-currency framework.

The government remains cautious about cryptocurrencies, opting for partial oversight rather than full legalization. A recent document seen by Reuters reveals concerns that regulating crypto could legitimize it, posing risks to the financial system. However, an outright ban is also deemed impractical, leaving the issue in a regulatory gray area.