According to CoinDesk, local news platform The Hindu reported that Rabi Sankar, deputy governor of the Reserve Bank of India, said at an event that stablecoins pose an existential threat to policy sovereignty and are only useful for a few countries. Sankar said that given the concerns about stablecoins, CBDCs are a better "stable solution" for every country.
“If large stablecoins are pegged to some other currency, there is a risk of dollarization,” said Sankar, expressing concern about the potential impact of stablecoins on India’s capital regulation or monetary policy. “We have to be very careful about allowing such instruments… From past experience of other countries, this is an existential threat to policy sovereignty.”