Will stablecoins break UPI? Indian cryptocurrency regulation documents reveal

India’s cryptocurrency regulation debate is intensifying, with a government document warning that legalization of digital assets may backfire, potentially putting stablecoins at risk to the country’s UPI payment system and pose systemic risks to the overall economy. Given that Indians have invested $4.5 billion in the cryptocurrency space, the authorities face a dilemma: the ban may not curb peer-to-peer transactions, while regulation may legitimize and intensify financial risks. The government remains cautious and awaits clear regulations on global regulation.