Crypto experts call for INR-backed stablecoin: Here's why it matters

Stablecoins are digital currencies that stay steady in value, unlike volatile cryptocurrencies such as Bitcoin. Their prices are linked to stable assets like gold or currencies

Amid a growing dominance of dollar-backed stablecoins globally, top crypto industry leaders have called for an INR-backed stablecoin to strengthen the rupee’s role in global trade.

 

At the Business Standard BFSI Insight Summit 2025 in Mumbai on Thursday, CoinDCX Co-founder and CEO Sumit Gupta, Binance Head of APAC S B Seker, former RBI executive director G Padmanabhan, and Bharat Web3 Association Chairperson Dilip Chenoy said India needs to quickly move towards internationalising the rupee.

What are stablecoins?

Stablecoins are digital currencies that stay steady in value, unlike volatile cryptocurrencies such as Bitcoin. Their prices are linked to stable assets like regular money (for example, the US dollar) or commodities like gold. A US dollar–backed stablecoin maintains a 1:1 value with the dollar. This link helps them avoid big price swings, making them more reliable for everyday use, payments, and transfers.  FOLLOW BS BFSI INSIGHT SUMMIT 2025 UPDATES LIVE

 

Why experts want an INR-backed stablecoin

Experts highlighted that developing an INR-backed stablecoin could help India reduce cross-border transaction costs and delays, and strengthen the rupee’s position in global trade.

 

Bharat Web3 Association's Dilip Chenoy said a rupee-backed stablecoin could help reduce remittance costs and boost inflows into India. “Using stablecoins will put more money in the hands of Indians. This could be our new ‘UPI moment’ in international remittances,” he said. Chenoy also stressed that stablecoins and central bank digital currencies (CBDCs) can coexist, serving different purposes.

 

He warned that global stablecoin ecosystems are increasingly “dollarising the economy”, leaving countries like India dependent on the US dollar. “Brics has already developed a non-dollar trade settlement mechanism, but India did not participate. We need to act now,” he said. 

Why it matters

The move is significant as nearly 99 per cent of existing stablecoins are dollar-backed, with the US rapidly strengthening its dominance. If India fails to act swiftly, it risks falling behind in the race to internationalise the rupee and reduce US influence over its monetary decisions.

 

Highlighting the same, G Padmanabhan cautioned about the risk it poses to India’s monetary independence. “If 97 per cent of stablecoins are dollar-backed, the US dollar will decide our monetary policy,” he said. “You simply cannot allow US dollar stablecoins and assume they will take care of everything. India must think about what policy responses it needs.”

A trillion-dollar opportunity

CoinDCX's Sumit Gupta pointed out that global stablecoin circulation, which is currently around $300 billion, could reach $2 trillion by 2030, and India risks falling behind if it doesn’t act soon. “If we don’t act now, others will internationalise their currencies while India lags. We need to internationalise the rupee,” he said. 

 

Gupta also noted that CBDCs and stablecoins serve different purposes: “CBDCs are good for cross-border payments, but if we want to internationalise the rupee, an INR-backed stablecoin is essential.”

‘Make the rupee digitally available’

Stating that nearly 99 per cent of existing stablecoins are USD-based, Seker said the US is rapidly strengthening this dominance by making the digital dollar programmable and interoperable.

 

“As digital dollars become programmable and interoperable, their global influence will grow,” he said. “Countries are realising they must make their currencies digitally available to protect national interests. The rupee has that opportunity.”

 

Seker added that India must carefully choose its approach, whether through a public-private partnership model or government-backed issuance, but act before the dollar’s digital dominance becomes irreversible.