India should introduce rupee-backed stablecoins to reduce reliance on U.S. dollar-pegged digital assets and protect users from exchange rate fluctuations, according to Binance’s Asia-Pacific Head, Leon Foong.
Speaking about digital asset adoption in the region, Foong said India’s crypto market remains heavily dependent on dollar-backed stablecoins such as USDT and USDC. While those tokens dominate global crypto trading because of their liquidity and accessibility, he argued that Indian users are exposed to currency risk whenever the rupee moves against the U.S. dollar.
Foong said a regulated rupee-backed stablecoin could provide a digital settlement asset tied to India’s national currency, allowing users and businesses to transact on blockchain networks without taking on unnecessary foreign exchange exposure. His comments come as India continues to evaluate its long-term regulatory framework for cryptocurrencies and stablecoins.
JUST IN: 🇮🇳 Binance APAC Head says India needs rupee stablecoins to hedge against US dollar fluctuations. pic.twitter.com/Ms20253wR4
— Crypto India (@CryptooIndia) August 3, 2026
Rupee stablecoins could complement India’s digital rupee
India already has a central bank digital currency, the digital rupee, issued by the Reserve Bank of India. Foong argued that privately issued rupee-backed stablecoins could serve a different purpose by supporting crypto trading, blockchain payments, remittances, and tokenized assets while operating under a regulated reserve-backed model.
The proposal comes as India maintains a cautious stance on digital assets. The country taxes crypto gains at 30% and applies a 1% tax deducted at source on many transactions, but legislation governing privately issued stablecoins has yet to be finalized.
Countries creating stablecoins tied to their own currencies instead of relying only on US dollar stablecoins
Several governments are laying the groundwork for stablecoins tied to their own currencies instead of relying entirely on U.S. dollar-backed tokens. Japan has introduced rules allowing licensed institutions to issue yen-backed stablecoins, Singapore has established a regulatory framework for single-currency stablecoins, Hong Kong has launched a licensing regime for fiat-backed issuers, and the European Union’s MiCA rules have created a legal path for euro-backed stablecoins.
These initiatives are aimed at supporting domestic payments, tokenized assets, and cross-border transactions in local currencies while giving governments greater oversight of digital money circulating within their financial systems.
Meanwhile, India’s Central Board of Direct Taxes (CBDT) has issued guidance on how crypto exchanges and other virtual digital asset (VDA) service providers must comply with the country’s new crypto reporting rules under the Income-tax Rules, 2026.
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