India's FM Sitharaman Signals Shift Towards Stablecoins
India's Finance Minister Nirmala Sitharaman has signalled a shift in the country's stance towards stablecoins. Speaking at the 4th Kautilya Economic Conclave 2025 in New Delhi, she warned that nations face a 'binary choice' - embrace new forms of money or risk being left behind. This comes as India, the world's largest recipient of international remittances, explores the potential of stablecoins to transform financial transactions for millions of citizens.
Stablecoins, a type of cryptocurrency pegged to the value of a stable asset like the US dollar, can facilitate near-instant cross-border settlements with minimal fees. This is a significant advantage over traditional banking circuits or transfer platforms. The Reserve Bank of India (RBI) officially recognized the use of stablecoins in 2021, opening the door for their potential integration into India's financial landscape.
Sumit Gupta, co-founder and CEO of CoinDCX, has been a vocal advocate for stablecoin adoption in India. He believes these digital currencies could help the country save billions of dollars in transfer fees. Beyond remittances, stablecoins can support trade financing, supply chains, and international commercial payments, potentially becoming a pillar for India's digital economy. However, clear regulatory guidelines will be crucial for their adoption, and India has been cautious about virtual assets. Sitharaman's recent remarks, however, suggest an emerging more open dialogue.
India receives over $125 billion in remittances each year. Stablecoins could reduce costs from the current 6-7% to just 1-3%, potentially saving billions in fees. With Sitharaman's recent remarks, India seems to be moving towards a more inclusive stance on stablecoins, acknowledging their potential to transform the country's financial landscape and economy.
