India might soon have its own rupee-backed stablecoin! 🇮🇳 Fintech firm ANQ, supported by Polygon, is leading the charge to build an INR-based digital currency.
If successful, it could transform on/off ramps, boost transparency, and mark the beginning of India’s next big crypto revolution. ✨
00:00Hello everyone, welcome once again to the Crypto Masterclass.
00:03So, is India going to have its own stablecoin after all, which is backed by rupee?
00:09The news is that ANQ, which is a fintech company, is going to launch a stablecoin and this project is backed by Polygon.
00:17But is it that easy? Is an Indian INR-based stablecoin really a possibility?
00:23Well, let's see how it works.
00:24The positive side of it is that, first of all, the currency, the treasury, which was there in the US earlier because people were using US dollar-based stablecoins.
00:37So, the treasury will stay in India if this happens to be a possibility.
00:42The second thing is that the on-ramping, off-ramping of the exchanges will become very easy because of an Indian INR-based stablecoin
00:49because it will certainly be having some temperament with the government because the money flow will be controlled.
00:55Third thing, the regulators might see it very easy because one important thing is no flow, inflow or outflow of the currency is actually happening.
01:03So, the regulators might find some sort of parity with this concept and can later on trust this kind of currency
01:09and which could be the next step to the evolution of crypto space in India.
01:13There's a flip side to this too.
01:16The flip side goes like, first, the regulators might not be that easy on this because, you know, you are playing with the currency.
01:24And the currency, you are deriving something which is based on currency and using it as such.
01:29Although the regulators are not very negative about this, but they have still not made up their mind on the crypto ecosystem,
01:36especially when it comes to issuance of tokens.
01:39They've only allowed the exchanges to function as a trading agent, as a broker,
01:44but no cryptocurrency can be issued as such and there are a number of limitations to it.
01:49So, this stablecoin might find it very difficult to have this particular kind of setup or issuance in this case.
01:57So, the second flip side of this concept is that the project says and it claims that this is backed by sovereign currency.
02:05So, it is only backed by sovereign currency.
02:09It is not backed by the government.
02:10It is only backed by the INR value, which is the second thing.
02:14So, you might not find it all that flashy when it comes to the actual acceptance of the project.
02:19The third and the most important side of this would be the fact that there would be a lot of legal compliances required.
02:26The KYC norms, the AML norms, which will in fact be a big hurdle for any project which is actually launching a stablecoin project or a crypto project in India.
02:36But, if this sails through, this could definitely be the advent of something really big for India.
02:41Because, you know, this will make an Indian-owned crypto ecosystem.
02:45And in the times to come, this might lead to, I mean, opening of a number of gates.
02:50Because once it is done, the crypto ecosystem will evolve.
02:53And will see through a lot of things, a lot of projects which are generally based on the INR-based stablecoin and are deriving values based on the INR-based stablecoin might find their place in the ecosystem.
03:05And this could even be a project which can lead to a settlement with the government where a common ground can be settled.
03:13And the regulators might see it as the upcoming technology and that might lead to some kind of evolution or some kind of parakel between the regulators and the technology.
03:22And this might be the golden era of crypto in the Indian ecosystem.
03:28This is Sudeep, signing off for this particular session.
03:31We'll keep bringing you more interesting updates.
03:34Stay tuned to CoinGabber for your own crypto masterclass.
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