Woofun AI reports that the Reserve Bank of India reaffirmed its "containment and prohibition" strategy for crypto assets in a submission to the Parliamentary Standing Committee on Finance. The RBI advised banks and regulated institutions against holding or trading crypto assets and privately issued stablecoins to mitigate contagion risks. It argued that regulating these assets could grant illegitimate status to speculative instruments lacking economic value.

Furthermore, the central bank warned that widespread stablecoin adoption threatens India's monetary sovereignty and payment system stability, recommending a focus on Central Bank Digital Currency (CBDC) infrastructure instead. The RBI also challenged claims of India having the highest global crypto adoption, citing methodological flaws in private data. It noted 54 registered service providers and 39.3 million KYC-verified users holding approximately 20.437 billion rupees in assets. Finally, the bank emphasized distinguishing speculative crypto from real-world asset (RWA) tokenization, such as government bonds, to protect financial innovation.