This document presents a strategic analysis arguing for the creation of a regulatory framework that empowers Indian private enterprises—from established banks to innovative fintech startups—to issue their own regulated, INR-backed stablecoins. This is not a proposal for a single, government-run digital currency.
We will demonstrate that this is not about embracing volatile cryptocurrency, but about adopting a superior, proven technology for payments that the world's leading economies are already institutionalizing to advance their own national interests. The current policy of regulatory ambiguity is stifling this innovation while driving Indian users and capital to unregulated offshore platforms, undermining the very goals of financial stability and oversight that regulators seek to uphold.[1]
This proposal is structured to first provide a clear understanding of the technology, then p