A quiet but powerful shift is taking place in the global financial system — and it’s happening through the world of fintech. Last month, the US Senate passed the GENIUS Act, a landmark legislation that gives American banks and even large companies like Amazon and Walmart the legal green light to issue digital dollars — known as stablecoins — on public blockchains.
What are stablecoins and why do they matter?
These stablecoins aren’t just another form of cryptocurrency. They are fully backed, 1:1, by US government Treasury Bills. In simple terms, this means a bank in the US would be able to issue a digital version of the dollar, backed by government bonds, and it can be used for payments across the world. This brings together the trust of government securities and the speed and transparency of blockchain technology.
What’s important is that this Bill passed with a rare bipartisan majority — 68 votes in favour — shows just how seriously the US sees this as part of its economic and strategic playbook. The goal is clear: Make the dollar stronger, reduce borrowing costs, and lead the transition into a digital-first financial system.
Secretary of the Treasury Scott Bessent put it clearly: “Stablecoins could end up being the largest buyers of US Treasury Bills. If you’re using a stablecoin in Nigeria, it’s backed by the US dollar.” This is smart, digital diplomacy. As more stablecoins circulate globally, demand for US debt increases, borrowing costs go down, and the dollar’s dominance is reinforced in the digital era.
India’s opportunity: Adapt to lead
Now let’s look at this from India’s point of view.
The RBI has expressed valid concerns about unregulated cryptocurrencies, particularly from a monetary policy and consumer protection standpoint. But what the US is doing is different — it’s about using the blockchain infrastructure to deepen public trust in digital money, without compromising on sovereignty or fiscal control.
India, too, has ambitions to reduce its government borrowing costs — from around 6 per cent today to levels closer to those of developed economies, around 3 per cent. But our conventional tools — like rate cuts — are limited, because of their inflationary consequences which erode the value of household savings. Like the US, we too can explore market-based mechanisms like tokenised government debt — under regulatory oversight — as a way forward.
At the same time, we must recognise the bigger picture: The stablecoin ecosystem isn’t just about finance — it’s about the future of fintech. It touches payments, digital wallets, eKYC, blockchain infrastructure, cybersecurity, tax compliance, and new forms of savings and investing. We are already seeing this globally. Emirates Airlines, the UAE’s flagship carrier, is now ready to accept cryptocurrencies as a form of payment — proof that digital assets are not confined to speculation, but are actively being integrated into real-world commerce. This is no longer a fringe industry — it is becoming the new face of financial services and digital commerce.
India’s youth are global leaders in digital innovation. From UPI to Aadhaar to ONDC, we’ve built the rails. But when it comes to blockchain-based financial products, many of our most talented developers and startups find themselves in regulatory limbo — either operating from abroad or working under the radar. This is a clear opportunity to get them back into the mainstream and contribute in national interest.
The Supreme Court itself has recently called upon the need to regulate the sector that is otherwise turning parts of the payments sphere into a “refined form of hawala.” Without a clear policy, legitimate fintech innovation remains stuck at the margins, while the grey areas expand. Regulation is not just about control — it’s about creating legitimacy, accountability, and scale.
With proper regulation, this space could unlock high-paying, high-skilled jobs, attract domestic and foreign investment, and formalise an industry already brimming with Indian talent. Our startups should not have to relocate to Singapore or Dubai to build globally competitive products. They should be able to do it from Delhi, Bengaluru, Hyderabad, and Mumbai — with the full support of Indian law.
