The Deputy Governor of the Reserve Bank of India (RBI) has highlighted the limited role of stablecoins in the country’s transactional economy. Speaking to Foresight News, he emphasized that while stablecoins can serve as digital assets, their practical use in everyday transactions remains constrained. He warned that widespread adoption of stablecoins could contribute to dollarization, potentially undermining the domestic currency’s dominance and complicating monetary policy implementation. The remarks reflect RBI’s cautious approach toward private digital currencies, reinforcing the need for regulatory oversight to safeguard financial stability.