Stablecoins can transform India's remittance economy

They can make global money transfers more efficient and also enhance India's export competitiveness

- ARVIND GUPTA & AAKASH GUGLANI

Global economic volatility, driven by swings of the US dollar, conflicts like Russia-Ukraine and Israel-Iran, US trade tariffs and supply chain disruptions, has intensified financial uncertainty. These challenges create friction and barriers for cross-border payments, which are critical for India—it is the world's largest recipient of remittances at $125 billion in 2024, or 3.2% of GDP. Traditional transfer systems are costly, so they reduce the money in hand for domestic recipients to use. India's digital public infrastructure (DPI), led by the Unified Payments Interface (UPI), which now accounts for nearly half of all real-time payments made globally by volume, provides a robust foundation. By integrating global stablecoins with the Reserve Bank of India's (RBI) central bank digital currency (CBDC), the e-rupee—which is pegged to the rupee and thus a 'stablecoin' too—India can leverage blockchain technology to streamline remittances, ensure digital sovereignty and position itself as a global 'Web 3.0 Valley'.