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ARTICLE · 13 JANUARY 2026

Stablecoins In India: A Regulatory Conundrum

In recent years, stablecoins have emerged as one of the most significant innovations in the digital asset ecosystem.

IndiaTechnology

In recent years, stablecoins have emerged as one of the most significant innovations in the digital asset ecosystem. A stablecoin is a digital token pegged to a stable asset such as fiat currencies or commodities like gold. By combining blockchain efficiency with the stability of the underlying asset, especially in fiat-backed models, stablecoins claim to enable faster, cheaper payments and e-commerce transactions. Supporters argue that stablecoins offer a predictable underlying value and are therefore, relatively less volatile than other cryptocurrencies, making them a preferred mode of payment for cross-border settlements.

It is because of these qualities that stablecoins with sovereign backing are becoming popular in various jurisdictions and have gained legislative momentum. The United States of America (US) has passed landmark legislation in the form of the Guiding and Establishing National Innovation for US Stablecoins Act ("GENIUS Act") to regulate

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