Woofun AI reports that the Reserve Bank of India reiterated its "prohibition with an inclination to restrict" stance on cryptocurrencies in a submission to the Parliament's Standing Committee on Finance. The central bank advised regulated financial institutions to avoid holding, trading, or providing exposure to cryptocurrencies and private stablecoins to mitigate systemic risks.

The RBI warned that regulating crypto under traditional frameworks could legitimize speculative assets and undermine monetary sovereignty through stablecoin usage. It disputed claims of India having the highest global adoption rate, citing methodological flaws in private data, and noted 54 registered service providers with 39.3 million KYC-compliant users holding ₹204.37 billion in assets.