Rupee-backed crypto stablecoins could be a gamechanger for accelerating digital payments that are safe and traceable while also enhancing financial inclusion in India, industry leaders said during a discussion on 'Crypto Beyond Hype: Building the Future or Burning Cash'.
"I'm 100% sure that you're going to hear in three months that in India also somebody will launch INR stablecoin," said Sandeep Nailwal, cofounder and CEO of the Polygon Foundation, a blockchain company. He acknowledged that there were regulatory hurdles, saying that "the first few attempts will be stifled."
A stablecoin is pegged to an asset such as a fiat currency (dollar, rupee) or gold to minimise price volatility. Countries such as the US, Japan, Singapore, and the Philippines have seen stablecoin adoption. Japan and the Philippines have even launched regulated versions for payments and remittances.
India is yet to legitimise crypto trading and has imposed 1% tax deducted at source (TDS) on crypto transactions, along with 30% capital gains tax, among the highest in the world.
The conversation gains importance at a time when the crypto asset class is being hailed as the next big financial market. The global crypto market cap crossed $4 trillion in 2025, setting a record. Bitcoin alone has breached multiple all-time highs in the past few months and is currently trading at $114,573. The 2025 bull run is supported by strong institutional inflows and exchange-traded fund (ETF) approvals in major markets, accepting crypto as a regulated investment asset.
Vugar Usi Zade, COO of global crypto exchange Bitget, highlighted the potential of stablecoins to reach underserved populations in India.
"By giving access to the stable tokens and on chain, we are first able to solve the problem of unbanked people, which are mainly women who are not only becoming spenders, but also becoming the owners of the currency and they can impact and propel the entire economy very fast," he said.
For businesses, the shift could eliminate current payment delays and high fees. Companies pay "1.5 to 3%" in card processing charges and wait "20 to 60 days for money actually coming to your bank account," said Bitget's Zade.
CEO and cofounder of global Web3 company Coinweb Toby Gilbert emphasised blockchain's transparency advantage, noting that "once there is an on-chain transaction, that transaction can be tracked from the point of origin, ongoing," unlike cash, which "once it passes hands, you break the link and it disappears."
Gilbert proposed that retail users in India be brought into the fold with KYC-linked wallets and fiat on-ramps. "We must continue to educate governments, regulators, policymakers," he said. "Using that education, they can then put the guardrails in place."
The development could transform international money transfers for millions of Indians. Currently, sending money abroad through traditional banking costs "4, 5, 6% of the money," while stablecoin transfers could reduce this to 15 basis points for rupee-to-rupee transactions, said Polygon's Nailwal. A basis point is 0.01 percentage point.
India is among the top recipients of foreign inflows. Overseas Indians sent home a record $129.4 billion in 2024 with the highest ever inflows of $36 billion in the December quarter alone, Reserve Bank of India (RBI) data showed.
"I'm 100% sure that you're going to hear in three months that in India also somebody will launch INR stablecoin," said Sandeep Nailwal, cofounder and CEO of the Polygon Foundation, a blockchain company. He acknowledged that there were regulatory hurdles, saying that "the first few attempts will be stifled."
A stablecoin is pegged to an asset such as a fiat currency (dollar, rupee) or gold to minimise price volatility. Countries such as the US, Japan, Singapore, and the Philippines have seen stablecoin adoption. Japan and the Philippines have even launched regulated versions for payments and remittances.
India is yet to legitimise crypto trading and has imposed 1% tax deducted at source (TDS) on crypto transactions, along with 30% capital gains tax, among the highest in the world.
The conversation gains importance at a time when the crypto asset class is being hailed as the next big financial market. The global crypto market cap crossed $4 trillion in 2025, setting a record. Bitcoin alone has breached multiple all-time highs in the past few months and is currently trading at $114,573. The 2025 bull run is supported by strong institutional inflows and exchange-traded fund (ETF) approvals in major markets, accepting crypto as a regulated investment asset.
Vugar Usi Zade, COO of global crypto exchange Bitget, highlighted the potential of stablecoins to reach underserved populations in India.
"By giving access to the stable tokens and on chain, we are first able to solve the problem of unbanked people, which are mainly women who are not only becoming spenders, but also becoming the owners of the currency and they can impact and propel the entire economy very fast," he said.
For businesses, the shift could eliminate current payment delays and high fees. Companies pay "1.5 to 3%" in card processing charges and wait "20 to 60 days for money actually coming to your bank account," said Bitget's Zade.
CEO and cofounder of global Web3 company Coinweb Toby Gilbert emphasised blockchain's transparency advantage, noting that "once there is an on-chain transaction, that transaction can be tracked from the point of origin, ongoing," unlike cash, which "once it passes hands, you break the link and it disappears."
Gilbert proposed that retail users in India be brought into the fold with KYC-linked wallets and fiat on-ramps. "We must continue to educate governments, regulators, policymakers," he said. "Using that education, they can then put the guardrails in place."
The development could transform international money transfers for millions of Indians. Currently, sending money abroad through traditional banking costs "4, 5, 6% of the money," while stablecoin transfers could reduce this to 15 basis points for rupee-to-rupee transactions, said Polygon's Nailwal. A basis point is 0.01 percentage point.
India is among the top recipients of foreign inflows. Overseas Indians sent home a record $129.4 billion in 2024 with the highest ever inflows of $36 billion in the December quarter alone, Reserve Bank of India (RBI) data showed.
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