Woofun AI reports that the Reserve Bank of India (RBI) reaffirmed its stance against legalizing virtual digital assets to the Standing Committee on Finance, citing threats to emerging economies and risks of illicit activities. The central bank advocates a prohibitive approach to shield financial institutions and criticized fiat-pegged stablecoins for undermining monetary sovereignty, urging a shift to its central bank digital currency. RBI officials disputed claims of high crypto adoption in India, attributing inflated figures to flawed private analysis methods.

Meanwhile, committee chairman Bhartruhari Mahtab noted the digital rupee’s limited reach, with 10 million users representing only 0.42% of the population, facing stiff competition from UPI’s daily transaction volume.