Binance's Asia-Pacific chief said India should develop rupee stablecoins to cut dollar exposure. The comments come as India weighs crypto regulation and a digital rupee.
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India should develop rupee-pegged stablecoins to reduce its reliance on dollar-denominated digital assets and shield users from exchange-rate swings, the Asia-Pacific head of Binance said.
Leon Foong, Binance's APAC chief, said India's crypto ecosystem has become heavily dependent on dollar-linked stablecoins such as Tether's USDT and Circle's USDC. Those assets dominate global crypto trading, but Foong argued their widespread use exposes Indian users and businesses to moves between the rupee and the dollar.
A rupee-denominated stablecoin could serve as a domestic digital settlement tool while reducing unnecessary foreign-exchange risk for users whose income, spending and savings are mostly in local currency, he said.
The comments come as India continues to shape its long-term regulatory approach to crypto. The country already imposes a 30% tax on crypto gains and a 1% tax deducted at source on many transactions, but it lacks a comprehensive legal framework for digital assets or privately issued stablecoins.
Dollar-pegged stablecoins serve as the primary trading pair on most global crypto exchanges, offering liquidity, price stability and easy access to international markets. But for Indian investors, using dollar-denominated tokens adds currency risk. Even if a crypto holding's value in dollars holds steady, swings in the USD/INR rate can affect returns when converted back to rupees.
Foong argued a regulated, rupee-linked stablecoin could mitigate that risk while making blockchain-based payments, remittances and settlements more efficient for domestic users. He added that local-currency stablecoins could complement India's broader digital payment infrastructure, not replace it, particularly for cross-border transactions and tokenized financial assets.
Several countries have begun exploring local-currency stablecoins as governments try to balance innovation with monetary sovereignty. Japan, Singapore and Hong Kong have introduced or proposed regulatory frameworks for fiat-pegged digital tokens, while discussions continue in Europe and the United States.
India has traditionally taken a cautious stance toward crypto, with regulators citing consumer protection, financial stability and capital-flow concerns. The Reserve Bank of India has consistently pushed its digital rupee, a central-bank digital currency, while remaining skeptical of privately issued crypto. At the same time, the government has increasingly recognized that digital assets require coordinated international regulation rather than a flat ban.
Market participants argue rupee stablecoins could coexist with the digital rupee because they serve different functions. A CBDC is a direct liability of the central bank, while privately issued stablecoins typically operate under reserve-based models overseen by financial regulators.
Whether India ultimately allows domestic stablecoin issuance will depend on future legislation and the regulatory framework policymakers choose. Foong's comments reflect a broader industry view that local-currency stablecoins could become a key component of national digital-asset ecosystems, reducing dollar dependence while fostering domestic blockchain innovation. As countries worldwide develop their own stablecoin policies, India faces a choice between a crypto market that remains primarily dollar-backed and a regulated rupee-based alternative.
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