USD-backed stablecoins are increasingly under scrutiny as potential risks to global monetary policy and financial stability. India’s chief economic advisor has cautioned that widespread use of such digital assets could undermine national currency control and central banks’ policy effectiveness.
While stablecoins facilitate cross-border payments and offer efficiency benefits, experts highlight the regulatory uncertainties and systemic risks associated with their growth. The warning underscores the need for global regulators to closely monitor the stablecoin ecosystem, balancing innovation with financial stability considerations.
