Despite the remarkable growth of the Indian crypto market, Indian traders still use dollar-backed stablecoins like $USDT and $USDC. While this creates currency risks, industry leaders highlight the significance of a regulated Indian rupee-backed stablecoin. According to experts like Binance’s SB Seker, an INR stablecoin could reduce foreign exchange risks and build a stronger crypto ecosystem in the country.
Binance Exec Calls for Regulated INR Stablecoin
In a recent interview, Binance APAC Head SB Seker stated that India is significantly in need of an INR stablecoin. He believes that a regulated rupee-backed stablecoin could reduce the country’s dependence on dollar-backed digital assets. Seker noted,
“Having Indian rupee stablecoins will be critical because it allows users and institutions in India to reduce the exposure they have from a foreign exchange perspective.”
The importance of a potential INR stablecoin is more understood from the growing dependence on foreign stable tokens like $USDT and $USDC. As these tokens have deep liquidity, widespread exchange support, and well-established blockchain infrastructure, they are adopted across the globe.
But experts like Seker argue that countries like India, which remain at the top of global crypto adoption, should have their own stablecoins. An INR stablecoin could allow cross-border payments to be settled directly in rupees, without relying on USD-backed cryptocurrencies. This would thus reduce conversion costs, speed up transactions, and lower reliance on foreign currencies.
INR-Backed Crypto Could Lower Remittance Cost
Another major figure who has been urging India to launch an INR stablecoin is the CoinDCX CEO Sumit Gupta. According to him, the token could reduce the cost of sending money home from abroad.
Explaining his points, Gupta noted that India receives above $125 billion in annual remittances. But what is concerning is the high fees and multiple intermediaries in the traditional cross-border payment system.
Amid this backdrop, the CoinDCX CEO stated that an INR stablecoin could reduce these remittance costs from around 6-7% to 1-3%. This could significantly save billions of dollars while enabling faster, cheaper, and more efficient international payments. His words read,
“I personally believe that India should embrace stablecoins! India receives over $125B in remittances annually, and stablecoins can reduce costs from 6-7% to just 1-3% saving us billions in fees.”
Will India Launch an INR Stablecoin?
As of now, there are no hints of India launching a rupee-backed stablecoin. As the Reserve Bank of India continues to remain cautious about stablecoins, the government hasn’t yet introduced a legal framework.
Last year, RBI Deputy Governor T. Rabi Sankar warned against the rising use of stablecoins. According to him, stable tokens could pose risks to the country’s monetary system, financial stability, and the overall banking industry.
“Cryptocurrencies have no intrinsic value. Since they do not have any underlying cash flows, they are not financial assets as well,” stated Sankar. The RBI official believes that these cryptocurrencies do not hold any benefits that traditional currencies offer. Thus, he prioritizes a Central Bank Digital Currency (CBDC) over an INR stablecoin, calling it a safer digital payment option. He stated, “CBDCs are inherently superior to stablecoins.”
However, as discussions on the launch of an INR stablecoin continue to rise, the possibility of such a move cannot be ruled out. As the country leads in crypto adoption and cross-border digital payments rise, industry leaders believe that India would soon introduce a regulated INR-backed crypto.
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