Finshots Daily India wants its own stablecoin?
Nov 12, 2025
India is exploring the idea of its own stablecoin, despite initial skepticism. The podcast dives into what stablecoins are and their role in mitigating crypto volatility. It highlights why Indians are increasingly using stablecoins for fast transactions and remittances. The discussion includes the impact of local demand on pricing and the potential benefits of a rupee-backed stablecoin. Challenges such as adoption hurdles and regulatory risks are also examined, alongside lessons from China’s approach to stablecoins.
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Why Stablecoins Matter
- Stablecoins offer crypto-like speed and low fees while maintaining price stability by pegging to steady assets like the dollar or rupee.
- Indians use stablecoins heavily for remittances and trading because they are faster and cheaper than banks.
India's Heavy Stablecoin Usage
- Over 98% of the global stablecoin market is dollar-based, and India accounts for a very large share of usage and conversions into stablecoins.
- Widespread Indian use channels value into dollar-backed coins, strengthening the dollar system over the rupee.
Arbitrage Keeps Pegs Intact
- Traders arbitrage small price deviations in stablecoins by buying from issuers and selling on exchanges for a quick profit.
- This mechanism keeps stablecoin prices close to their peg by increasing supply when prices rise above parity.