Will India's Hnis transition to stableecoins transition as digital dollar profits?

Copyright © HT Digital Streams Limit all rights reserved. Will India’s individuals with high net worth move to stableecoins, since digital dollar gains are on the basis? Stableecoins are cryptocurrencies linked to stable assets such as the US dollar, gold or rupee and reflect what a well -known currency is worth. (IStockphoto) Summary Indian investors, especially individuals with high net worth working under the liberalized overpayment scheme, can find such stableecoins an attractive alternative to conventional forex channels in June 2025, the US Congress has issued the Guiden Act and the National Innovation for SU stable, or Genius Act. While it may just look another US regulatory milestone, the implications of this law are likely to extend far beyond US borders. For Indian investors, policymakers and Fintech participants, this can be the beginning of a large transformation in the way capital flow is used, and digital money is used, and financial services are structured. The Act provides an extensive framework for regulating US dollar-backed stableecoins. It is mandates that these signs are fully supported by assets with liquid dollar-denominated, force monthly revelations and bring stable preachers under the regulatory scope of federal and state authorities. The law legitimizes the role of private stableoins-such as those issued by PayPal of Circle-Solank they comply with the compliance requirements of reserve support, anti-money laundering and consumer protection. In fact, the US has created a parallel digital currency system built on credibility, transparency and institutional supervision. For India, this development has far -reaching consequences. Although the Reserve Bank of India has taken a cautious attitude towards cryptocurrencies, Indian users and platforms have already linked to stableecoins, especially for border overpayers, dollar rod and global crypto trade. The Genius Act formalizes what was once a gray area, thus increasing the status of US stableoins from fringe benefits to possible cornerstones of digital finance. This shift has the potential to not only challenge cryptocurrencies, but also traditional Fiat-based systems, including India’s own digital rupee. One of the most immediate consequences is likely to be felt in capital mobility. A fully regulated, audited and liquid dollar-stablecoin can quickly become a preferred vehicle for border border fund flow, institutional hedging and even the settlement of the real world assets. What this means for Indian investors Indian investors, especially individuals with high net value and businesses working under the Liberalized Remittance Scheme (LRS), can find such stableecoins an attractive alternative to conventional forex channels, especially if it offers speed, lower costs and exposure to dollar. This can cause new pressure on the Indian rupee, especially if the demand for stableoins rises without adequate domestic alternatives. Fintech firms in India can also find themselves on a crossroads. With a reliable, regulated stableecoin available, many cross-border service providers, wealth-tech platforms and global investment facilitators can re-wire their backing systems around these digital dollars. Although it opens innovation opportunities, it runs the risk of moving a high value services from the regulatory domain of India at the same time. Unless Indian authorities provide clarity on how stableecoins can be used within the legal framework, a wave of foreign migration – both technological and financial – can follow. Another subtle but significant impact can be on the digital rupee itself. While the RBI’s Central Bank Digital Currency (CBDC) is still in its pilot phase, its success depends on the survey by banks, businesses and ultimately the public. The Genius Act creates a clear measure: a digital dollar that is credible, easy to use and accepted worldwide. If the e-call cannot match it in trust or functionality, it can be bypassed in international trade and investment transactions-especially by firms with world operations. For Indian regulators, this moment offers a strategic bending point. The focus can no longer be limited to the tax of crypto transactions or maintenance against illegal exchanges. It should shift to the development of a nuanced policy framework that distinguishes between speculative assets and compliance with digital tokens with Fiat. Sebi and RBI were able to work together on regulatory sand cabinets for signed finances. Amendments to FEMA may be needed to explicitly determine how stableecoins can be used in borderline trading, capital flow or investment settlements. Most importantly, a clear road map for how the digital rupee and other digital currencies work together-and may develop work together. From the point of view of an investor, the implications are equally significant. Firms that are aligned early with stableecoin infrastructure-whether by fintech partnerships, signed assets or payment systems can enjoy a first benefit. As fund flows through these new rails, the nature of the participation in capital markets can shift. Looking at how institutional funds, mutual funds and large businesses respond to this regulatory change in the US, it can provide early signals about where value can be created or disrupted. The Genius Act does more than a form of money. It legitimizes a new infrastructure for moving capital, access to returns and the build -up of programmable financial services. If India wants to remain competitive in this emerging digital financial architecture, it will have to act with urgency and clarity. The US has taken the first big step – India can match the momentum or the risk of staying behind as capital, innovation and credibility flow elsewhere. Pratibha Kumari is an assistant professor to Tapmi Bengaluru. Views are personal. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Money Read Next Story