Why India must seize the stablecoin moment sparked by the US GENIUS Act
Why This is a Major Opportunity for India
Today, India is the world’s largest remittance market, receiving a staggering $130 billion in 2024. The growing use of stablecoins in global transactions highlights the importance of regulatory leadership. Nations that establish clear frameworks early on could help shape how digital assets are integrated into the global economy, which may influence financial ecosystems like India’s.
On the other hand, this is a building opportunity for India. The country’s fintech ecosystem, which boasts over 10,000 startups and is projected to reach a $420 billion market size by 2029, can leverage this emerging infrastructure to build innovative Web3-based financial products. A regulated stablecoin market could empower Indian fintechs to build on safer, interoperable infrastructure. The GENIUS Act creates a playing field where another UPI movement could be possible, but now, at a global level. The clarity in US regulations can also open doors for Indian startups to collaborate and gain access to investment opportunities to build world-class Web3 solutions, given that India ranks second in the global Web3 talent pool, just behind the US.
More importantly, the ease of making international payments will bring more money into remittance-heavy countries like India. With more dollars entering the country, the spending is expected to increase significantly, directly boosting the economy.
However, for India to utilise these emerging opportunities, it is important that we take a stance on how we look at stablecoins and crypto as a whole. While there has been significant progress over the years with the introduction of tax laws for crypto investments and India advocating for standardised crypto regulations during the G20 Presidency, it is time to accelerate the process to be able to lead the change in the global financial ecosystem.
In my opinion, the GENIUS Act is the beginning of a transformation that is to come in the financial ecosystem. If done right, this could change the way money moves and impact all major nations as we move towards a digital-first economy. India must act fast to mark its place in this evolution. With the world’s largest tech-savvy population and a booming fintech sector, India could lead both as a producer and a consumer of the infrastructure that is built in this space. This positions India to become a global leader in the stablecoin and digital asset economy, provided we have regulatory clarity that balances consumer protection and allows responsible innovation in the space.
(Edul Patel is the Co-founder and CEO of Bengaluru-based crypto exchange Mudrex)