CoinDCX CEO Sumit Gupta urges India to adopt rupee-backed stablecoins to cut remittance fees and boost India’s stablecoin adoption.
Sumit Gupta, the co-founder and CEO of CoinDCX, has been vocal about the potential benefits of stablecoins in transforming India’s remittance landscape. His call for the adoption of stablecoins for cross-border payments comes in light of Finance Minister Nirmala Sitharaman’s remarks at the 4th Kautilya Economic Conclave 2025 in New Delhi. Gupta believes that leveraging blockchain technology could save India billions in remittance fees each year.
Stablecoins Can Save India Billions in Remittance Fees
Gupta shared his insights via X (formerly Twitter), highlighting that India stands as the global leader in remittances, receiving over $125 billion annually. He pointed out that typical transfer fees currently range between 6% to 7%, a stark contrast to the potential reduction to just 1% to 3% with stablecoins. This significant decrease in fees could translate into substantial savings for Indian families relying on remittances.
Noting India’s robust fintech ecosystem, Gupta emphasized that stablecoins could leverage blockchain to facilitate superior cross-border transactions. His vision aligns with a growing sentiment towards the adoption of cryptocurrency in India, especially since the country recently topped the Chainalysis crypto adoption index.
The Case for Rupee-Backed Stablecoins
Gupta articulated a compelling case for the development of a 100% rupee-backed stablecoin, regulated by the Reserve Bank of India (RBI). He argued that such a stablecoin would enhance trust and security, accelerating payment processes. Transparency is critical; therefore, ensuring that the stablecoin’s reserves are entirely in Indian Rupees (INR) is essential. This could further solidify public confidence in digital currencies.
Gupta also discussed how utilizing blockchain technology for remittances could keep more money within Indian families, ultimately strengthening India’s overall position within the global financial system.
Regulatory Support Needed for Stablecoin Growth
Gupta’s comments delve into the vital role of regulation in the success of stablecoins. He argued that India requires a clear regulatory framework akin to the structures seen in the U.S. and Europe. Robust oversight could effectively mitigate financial risks while promoting innovation, enabling India to remain competitive on the world stage.
He urged the Indian government to perceive stablecoins as an integral component of the digital payments network, rather than seeing them as competition to existing systems like UPI and digital wallets. Gupta believes collaboration and interoperability between these digital assets can enhance the overall payment infrastructure in India.
A Path Towards Financial Inclusion
Many experts echo Gupta’s sentiments, asserting that a rupee-backed stablecoin could significantly increase financial inclusion. This innovation would allow for instant, low-cost transactions between India and other countries, offering considerable advantages to small businesses and families depending on overseas remittances.
Furthermore, industry analysts have noted that global developments, such as Bitwise Aptos’ filing in the U.S., indicate a broader shift towards blockchain-based financing. They assert that India stands to gain by creating similar regulated products, which could attract foreign investments and improve liquidity in domestic markets.
The Urgency of Action
Gupta highlighted the urgency of regulatory clarity, warning that any delays might push India into the periphery of the evolving landscape of digital finance. He called for immediate action to position India as a frontrunner in digital finance innovation, stressing the importance of not falling behind global trends.
The introduction of a rupee-backed stablecoin represents an opportunity to redefine how India manages remittances. The potential for significant savings, enhanced liquidity, and economic growth serves as a strong argument for modernizing the country’s financial system through the regulation of digital assets. Gupta’s initiative sheds light on a transformative path that could revolutionize India’s approach to the global financial ecosystem.