Oct 3, 2025
India's Stablecoin Moment
119 Million Users vs. RBI's Ban
India's Stablecoin Moment
RBI wants to ban stablecoins. 119 million Indians are using them anyway.
Until Finance Minister Sitharaman said: "Engage with stablecoins or be left behind."
For the first time, India's Finance Minister publicly acknowledged what the market already knows.
And if you're building crypto products in India right now, this changes everything.
RBI wants to ban stablecoins. 119 million Indians are using them anyway.
Until Finance Minister Sitharaman said: "Engage with stablecoins or be left behind."
For the first time, India's Finance Minister publicly acknowledged what the market already knows.
And if you're building crypto products in India right now, this changes everything.
The Numbers Don't Lie
The Numbers Don't Lie
While the world crossed $301 billion in stablecoins (up 47% this year), India's been stuck in regulatory limbo. RBI cautious. 30% tax + 1% TDS. Zero official framework.
But here's India's stablecoin paradox:
#1 globally in crypto adoption (2nd year running).
119M crypto users (largest base worldwide).
$135B in annual remittances
But still no regulatory clarity.
Transparency builds trust. For processes involving sensitive data, clear status indicators and upfront communication are not just nice-to-haves; they are essential features for building user confidence.
What's Happening Globally While We Debate
What's Happening Globally While We Debate
JPMorgan launching JPMD token. PayPal's PYUSD at $2.54B. Ripple's RLUSD getting bank custody from BNY Mellon. 9 major European banks forming a EUR stablecoin consortium.
Traditional finance knows: this is infrastructure, not speculation.
Transparency builds trust. For processes involving sensitive data, clear status indicators and upfront communication are not just nice-to-haves; they are essential features for building user confidence.
India's 3 Paths Forward
India's 3 Paths Forward
Path 1: Build INR stablecoins
Sovereign control. Rupee export power. Perfect for our $135B remittance market.
Problem?
Needs RBI approval.
Path 2: Regulate USD stablecoins
119M Indians already use USDT/USDC. Battle-tested. Global liquidity.
Problem?
Dollarization risk (RBI's biggest fear).
Path 3: Push e-Rupee (CBDC)
Launched Dec 2022. RBI-controlled. Sovereign digital currency.
Problem?
Low adoption.
Can't compete with crypto benefits.
Transparency builds trust. For processes involving sensitive data, clear status indicators and upfront communication are not just nice-to-haves; they are essential features for building user confidence.
The Reality: User Behavior Wins
The Reality: User Behavior Wins
119M people won't suddenly stop using stablecoins because we launch a CBDC or regulate differently.
The winning move? Hybrid approach:
Regulate USD stablecoins for global trade (they're already here)
Approve INR stablecoins for domestic use + remittances
Let e-Rupee serve govt/institutional needs
Transparency builds trust. For processes involving sensitive data, clear status indicators and upfront communication are not just nice-to-haves; they are essential features for building user confidence.
What This Means for Builders
What This Means for Builders
If you're designing crypto products in India right now:
Build for USD stablecoins today.
Focus on USDT, USDC. Priority: UPI on/off-ramps that actually work.
Prepare for INR stablecoins tomorrow. Watch for RBI sandbox pilots.
When they launch, early movers win.
Make compliance a feature.
Show regulatory status in UI.
Don't hide it.
In grey markets, transparency = competitive advantage.
Transparency builds trust. For processes involving sensitive data, clear status indicators and upfront communication are not just nice-to-haves; they are essential features for building user confidence.
Enjoyed the Blog
Make sure to also take a look at the other two case studies. They're worth checking out!!
