US dollar stablecoins to raise challenges for global monetary policy, India chief economic advisor says

India's Chief Economic Adviser V. Anantha Nageswaran gestures during a press conference in New Delhi, India, January 31, 2025. REUTERS/Priyanshu Singh

MUMBAI (Reuters) -The rising popularity of U.S. dollar stablecoins will be an important phenomenon next year and could raise challenges for monetary policy globally, India's Chief Economic Adviser V. Anantha Nageswaran said on Wednesday.

"The presence of a dollar stablecoin will bring with it its own challenges for monetary policy, monetary transmission and for seigniorage benefits of any country," Nageswaran said at an event in Mumbai.