By actively engaging in debates over innovations like stablecoins, India is positioning itself as a key voice in shaping the future of global finance. Addressing the Kautilya Economic Conclave 2025 on October 3, Finance Minister Nirmala Sitharaman highlighted that the changes underway reflect long-term structural transformations, not short-lived disturbances in the world economy.
Sitharaman’s statement stands as one of the strongest signals yet from an Indian policymaker that digital currencies are embedded in today’s global financial order. Stablecoins, digital tokens tied to conventional currencies such as the US dollar and euro, offer a link between the traditional banking system and blockchain-based economies.
Their growing use in trade and cross-border settlement has drawn heightened scrutiny from regulators concerned about stability and consumer safeguards. Her remarks indicate a recognition that stablecoins, with effective oversight, could serve as a foundation for more efficient global finance.
Sitharaman’s statement follows intensified global dialogue, with the IMF and FSB pushing for uniform international standards to govern stablecoins. Both institutions warn that without such frameworks, stablecoins could complicate capital flow management and challenge economic sovereignty.
India, as a central actor in G20 discussions on digital assets, has consistently argued for a harmonized global approach, emphasizing that fragmented national rules would be insufficient to address cross-border risks.
The FM’s statement comes as India grapples with divergent views on digital assets. The RBI has consistently raised concerns about private cryptocurrencies, yet industry experts are advocating for a regulatory path that encourages innovation.
Former RBI Governor G. Padmanabhan has called on the government to adopt a clear, forward-looking policy on stablecoins, warning that dismissing them outright could hinder progress in India’s fintech ecosystem.
An official transcript of Sitharaman’s speech has not yet been released, but several verified reports and recordings quote her urging nations to “prepare to engage” with stablecoins. The statement gained rapid attention online, marking a nuanced shift in India’s stance,from skepticism toward measured participation, as the country acknowledges the expanding and globally interconnected nature of the digital asset ecosystem.