According to Reserve Bank of India Deputy Governor Rabi Sankar, stablecoins pose a threat to policy sovereignty and are only useful to a few countries. He believes that central bank digital currencies (CBDC) are better solutions for all countries.

Sankar expressed concerns that stablecoins could potentially replace the use of the rupee in India's local economy and could impact India's capital regulations or monetary policy. The G20, of which India currently holds the presidency, shares concerns about stablecoins, while the G7 is expected to align with the Financial Stability Board's recommendations for stablecoins.