SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Reserve Bank of India | Ministry of Finance
The September 2025 issue of the IMFβs Finance & Development magazine highlights the rapid rise of stablecoins, which now account for over USD 160 billion in circulation globally. These digital assets promise lower transaction costs and wider financial inclusion but pose serious risks for monetary sovereignty, financial stability, and consumer protection.
The IMF cautions that without clear regulatory standards, stablecoins could drive currency substitution, amplify volatility, and enable illicit finance. For India, where UPI has already transformed digital payments and the digital rupee pilot is underway, this raises immediate policy stakes. Regulators must decide how to manage stablecoin innovation, ensure interoperability with Central Bank Digital Currencies (CBDC), and protect macro-financial stability while keeping remittances and cross-border flows secure.
Relevant question for policy stakeholders: How should India design a regulatory framework that balances innovation in stablecoins with safeguards for financial stability, monetary policy, and consumer protection?
Follow the full report news here: https://www.imf.org/-/media/Files/Publications/Fandd/Article/2025/09/fd-september-2025.ashx