India's Reserve Bank of India (RBI) Deputy Governor has issued a warning regarding the potential risks posed by stablecoins to the country's economy. In a recent speech, the deputy governor highlighted concerns that stablecoins could increase dollarization risks, undermine control over capital flows, and pose challenges to monetary policy. The proliferation of stablecoins may also lead to higher credit costs and encourage currency substitution, potentially impacting India's financial stability. The deputy governor also noted that foreign stablecoins could result in a loss of seigniorage revenue for the country. As a result, liquidity and crypto markets are under stringent regulatory scrutiny. The European Union's Markets in Crypto-Assets Regulation is cited as a global benchmark for regulatory oversight in this area.