Binance exec urges India to launch rupee-backed stablecoins to cut dollar reliance

Binance Asia-Pacific head Leon Foong has called on Indian policymakers to introduce rupee-backed stablecoins, arguing they would shield local crypto users and businesses from foreign exchange risk tied to the dollar-pegged tokens that currently dominate the market.

Speaking on the future of digital asset adoption in Asia, Binance Asia-Pacific Head Leon Foong said Rupee stablecoins would help Indian users and businesses avoid foreign exchange risks while enabling blockchain-based payments, trading, and settlements.

Foong argued that although dollar-backed stablecoins such as USDT and USDC dominate global crypto markets due to their liquidity and widespread adoption, Indian users remain exposed to fluctuations between the Indian rupee and the U.S. dollar. He believes Rupee stablecoins could provide a more efficient and locally anchored digital settlement asset while complementing India’s broader digital finance ambitions.

Rupee stablecoins could reduce India’s currency exposure

According to Foong, India’s cryptocurrency market relies heavily on dollar-denominated stablecoins, making traders and businesses vulnerable whenever the rupee weakens against the U.S. dollar.

“India should introduce rupee-backed stablecoins to reduce reliance on U.S. dollar-pegged digital assets and protect users from exchange rate fluctuations.” — Leon Foong, Asia-Pacific Head, Binance

Foong explained that Rupee stablecoins would offer a digital asset fully linked to India’s national currency, allowing users to participate in blockchain-based transactions without assuming unnecessary foreign exchange exposure.

He noted that such stablecoins could become an important settlement mechanism for digital commerce, offering predictable value while operating on blockchain infrastructure.

The proposal arrives as policymakers continue evaluating how privately issued stablecoins should fit within India’s evolving digital asset regulations.

Although cryptocurrencies remain legal to own and trade, India has adopted a cautious regulatory approach that includes a 30% tax on crypto gains and a 1% Tax Deducted at Source (TDS) on many crypto transactions.

Supporters argue that Rupee stablecoins could strengthen India’s digital economy by providing an alternative to foreign currency-backed tokens without replacing existing monetary policy.

Rupee stablecoins could complement India’s digital rupee

India has already launched the digital rupee, a central bank digital currency (CBDC) issued by the Reserve Bank of India. However, Foong believes privately issued Rupee stablecoins would serve a distinct role rather than compete with the government’s CBDC.

“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.” — Leon Foong, Asia-Pacific Head, Binance

Unlike a CBDC, which is issued directly by a central bank, privately issued stablecoins are generally backed by reserves and designed for broader participation across decentralized finance, crypto trading, tokenized assets, remittances, and blockchain-based payments.

Foong suggested that Rupee stablecoins could operate under a regulated reserve-backed framework, enabling innovation while maintaining oversight and consumer protection.

The proposal reflects growing global interest in local currency-backed stablecoins as governments seek to expand digital payment infrastructure without relying exclusively on dollar-denominated digital assets.

Countries are expanding local currency stablecoins

India is not alone in examining alternatives to U.S. dollar-backed stablecoins.

Several jurisdictions have already established legal pathways for stablecoins linked to their domestic currencies. Japan has introduced regulations allowing licensed institutions to issue yen-backed stablecoins. Singapore has implemented a regulatory framework for single-currency stablecoins, while Hong Kong has introduced a licensing regime for fiat-backed stablecoin issuers.

Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) framework has created legal certainty for euro-backed stablecoins, supporting domestic payments and tokenized financial assets.

These initiatives are intended to encourage innovation while giving regulators greater oversight of digital money circulating within national financial systems.

As countries increasingly embrace local currency-backed digital assets, Rupee stablecoins could become an important part of India’s digital finance strategy if regulators choose to establish an appropriate legal framework.

India continues refining its crypto regulations

While discussions around Rupee stablecoins continue, India is also tightening oversight of the broader digital asset industry.

The Central Board of Direct Taxes (CBDT) recently issued guidance explaining how cryptocurrency exchanges and other Virtual Digital Asset (VDA) service providers must comply with the country’s updated reporting obligations under the Income-tax Rules, 2026.

The guidance signals India’s continued effort to improve transparency and regulatory compliance across the crypto sector while policymakers deliberate on the future of privately issued stablecoins.

Whether Rupee stablecoins ultimately become part of India’s financial ecosystem will depend on regulatory decisions in the coming years. However, Binance’s proposal adds to a growing international conversation about reducing dependence on dollar-backed digital assets while expanding blockchain-powered financial services using national currencies.