Stablecoin Market Triples to $300B; RBI Flags Monetary Sovereignty Risks

• Global stablecoin market surged to $300 billion in two years, prompting RBI warnings on financial stability.
• RBI's Financial Stability Report highlights risks like undermining monetary sovereignty and vulnerabilities in economies.
• Despite claims of stability, stablecoins show volatility; market is highly concentrated with 85% held by Tether and Circle.
• Concerns include 'digital dollarisation', credit disintermediation, and use in illicit activities, surpassing Bitcoin for such flows.
• Stablecoins lack central bank backing, are prone to destabilizing runs, and pose systemic risks to traditional finance.

Why It Matters: Rapid stablecoin growth to $300B raises RBI concerns over financial stability and monetary sovereignty.