With domestic liquidity conditions showing some signs of challenges, Sankar said the RBI will ensure that there is no scarcity of money for productive purposes. (Photo: Vijay Sartape/NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar on Thursday said the stablecoins carry huge risks for "policy sovereignty", and hinted that India will avoid the introduction of the instrument even though it is asset-backed.

With domestic liquidity conditions showing some signs of challenges, Sankar said the RBI will ensure that there is no scarcity of money for productive purposes.

"Economic activity will not suffer because of liquidity reasons," he assured.

"We are very clear in our mind that stablecoins do not serve a

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