Mumbai, Dec. 12 -- The Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar on Friday raised concerns over the growing prominence of stablecoins, arguing that they pose significant risks to monetary sovereignty, financial stability and banking systems, while offering few benefits that cannot already be delivered by existing payment infrastructure.

Delivering the keynote address at a media conclave, Sankar said stablecoins lack the core attributes of modern money, fiat backing and singleness, and therefore are structurally unsuitable to anchor a financial system.

"Over time, the form of money has evolved with technology - from commodities to metal to paper to balances in deposit accounts to now, digital tokens. While the forms of mo...