Core Insights - India's financial landscape is undergoing a transformation with the potential adaptation to stablecoins, as highlighted by Finance Minister Nirmala Sitharaman, who emphasized the need for nations to adapt to new monetary architectures or risk exclusion [3][4][7] Regulatory Environment - Historically, India's courts and financial regulators have aimed to suppress cryptocurrency activities, with the Reserve Bank of India (RBI) opposing digital assets and warning against the risks posed by stablecoins [1][4][5] - The RBI has expressed concerns that stablecoins could fragment India's financial infrastructure and weaken the existing digital payment system [4][5] Central Bank Digital Currency (CBDC) and Tokenized Deposits - The RBI is actively piloting its Central Bank Digital Currency (CBDC), the e-rupee, which has been in a large-scale pilot for three years, covering both retail and wholesale transactions [6][7] - The RBI's latest initiative involves commercial banks exploring tokenized deposits, which are seen as a middle ground between stablecoins and CBDCs, being privately owned and fully backed by bank deposits [6][8]

Core Insights - The stablecoin market is experiencing rapid growth, with issuance volumes increasing from approximately $200 billion at the beginning of 2025 to $280 billion as of Thursday, prompting Citi to revise its 2030 forecast for stablecoin issuance to $1.9 trillion in the base case and $4 trillion in the bull case, up from previous estimates of $1.6 trillion and $3.7 trillion respectively [1][2] Group 1: Market Growth and Projections - Stablecoins could facilitate up to $100 trillion in annual transactions by 2030 under the base scenario, potentially doubling in the bull case, reflecting a significant shift in digital currency adoption driven by blockchain technology [2] - The issuance of stablecoins is part of a broader transformation in financial infrastructure, with various forms of digital money, including stablecoins, bank tokens, and CBDCs, expected to coexist and serve different purposes [4] Group 2: Competitive Landscape - While stablecoins are growing, bank tokens, such as tokenized deposits, may see higher transaction volumes due to corporate demand for regulatory safeguards and real-time settlement, with potential turnover exceeding $100 trillion by the end of the decade [3] - The U.S. dollar remains the dominant currency in on-chain finance, driving demand for Treasuries, although regions like Hong Kong and the UAE are emerging as experimental hubs for digital finance [4]