India should develop rupee-backed stablecoins to reduce dependence on US dollar-pegged digital assets and protect users from currency fluctuations, according to the Asia-Pacific head of Binance.
Speaking about the evolution of digital asset markets in the region, Binance APAC Head SB Sekar said that India’s crypto ecosystem has become heavily reliant on US dollar-backed stablecoins such as Tether’s USDT and Circle’s USDC. While those assets dominate global cryptocurrency trading, Foong argued that their widespread use exposes Indian users and businesses to exchange-rate movements between the Indian rupee and the US dollar.
A rupee-backed stablecoin, he said, could provide a domestic digital settlement asset while reducing unnecessary foreign-exchange exposure for users whose income, expenses and savings are primarily denominated in Indian currency.
The comments come as India continues evaluating its long-term approach to cryptocurrency regulation. Although the country imposes a 30% tax on crypto gains and a 1% tax deducted at source on many transactions, policymakers have yet to establish a comprehensive legal framework governing digital assets or privately issued stablecoins.
Rupee Stablecoins Could Reduce Currency Risk
Dollar-backed stablecoins currently serve as the primary trading pair across most global cryptocurrency exchanges because they provide liquidity, price stability and easy access to international markets.
For Indian investors, however, using dollar-denominated stablecoins introduces an additional layer of currency exposure. Even if the value of a cryptocurrency investment remains unchanged in US dollar terms, fluctuations in the USD/INR exchange rate can affect returns when converted back into rupees.
Sekar argued that a regulated rupee-backed stablecoin could help mitigate that risk while making blockchain-based payments, remittances and settlements more efficient for domestic users.
He also suggested that local-currency stablecoins could complement India’s broader digital payments infrastructure rather than replace it, particularly for cross-border transactions and tokenized financial assets.
Several jurisdictions have begun exploring domestic-currency stablecoins as governments seek to balance innovation with monetary sovereignty. Countries including Japan, Singapore and Hong Kong have introduced or proposed regulatory frameworks governing fiat-backed digital tokens, while discussions continue in Europe and the United States.
India’s Crypto Policy Remains Unresolved
India has historically taken a cautious approach toward cryptocurrencies, with regulators expressing concerns about consumer protection, financial stability and capital flows.
The Reserve Bank of India has consistently promoted the digital rupee, its central bank digital currency, while remaining skeptical of privately issued cryptocurrencies. At the same time, the government has increasingly acknowledged that digital assets require coordinated international regulation rather than outright prohibition.
Industry participants argue that rupee-backed stablecoins could coexist with the digital rupee by serving different functions. While a CBDC represents a direct liability of the central bank, privately issued stablecoins typically operate under reserve-backed models regulated by financial authorities.
Whether India ultimately permits domestic stablecoin issuance will depend on future legislation and the regulatory framework adopted by policymakers.
Sekar’s comments reflect a broader industry view that local-currency stablecoins could become an important component of national digital asset ecosystems, reducing reliance on the US dollar while supporting domestic blockchain innovation. As countries around the world develop their own stablecoin policies, India now faces the question of whether its rapidly growing crypto market should continue depending primarily on dollar-backed digital assets or begin building a regulated rupee-based alternative.