Why India Needs Its Own Stablecoin
Date: 25-10-2025
Russia has already warned that the U.S. is trying to exploit global crypto users to erase its $35 trillion debt by pushing stablecoin adoption (backed by U.S. Treasuries) — and then eventually devaluing the dollar. 🔗 Watch the video
However, the RBI seems to be taking a cautious stance. It wants to promote a CBDC (Central Bank Digital Currency), but democratic countries are unlikely to allow such centralized control. In fact, the U.S. has already passed anti-CBDC legislation. The Anti-CBDC Surveillance State Act (H.R. 1919), introduced by House Majority Whip Tom Emmer (R-MN), was passed by the U.S. House of Representatives on July 17, 2025, by a vote of 219–210. This law prohibits the Federal Reserve from issuing a CBDC directly or indirectly to individuals — preventing the Fed from becoming a retail bank with access to personal financial data.
The Case for Public Stablecoins
What we need instead are stablecoins issued on public blockchains, such as Ethereum and Solana.
A rupee-backed stablecoin would bring in foreign investment and could become a global digital currency, ensuring that wealth generated through trade remains in India — unlike when we trade using the U.S. dollar or dollar-backed stablecoins.
India has a massive labor force that can benefit from global rupee-based trade rather than depending on the dollar.
The Global South’s Labor Inequality
The Global South provides an astonishing 90% of the world’s labor but receives only 21% of global income.
Rich countries drain ‘shocking’ amount of labor from the Global South
Workers in the Global South — from farm laborers to scientists — power the world economy, yet face a massive wage gap. The disparity cannot be explained simply by differences in skill levels. According to Jason Hickel, countries in the Global South supply the majority of labor across all skill levels and sectors, contributing 1,124 billion hours of high-skilled labor in 2021, compared to only 971 billion hours from the Global North.
Despite this, wages in the South remain 87% to 95% lower for work of equivalent skill.
One explanation is unequal exchange — for instance, a southern worker may produce a smartphone component worth $2, while the final product, assembled and marketed in the North, sells for $800, capturing most of the value there.
Economists Bettelheim and Palloix argued that due to the monopolistic control of rich countries, they can sell goods above market value, while peripheral economies must sell below production cost, leading to a structural transfer of value from developing to developed nations.
However, unequal exchange is only part of the story. If Southern labor is equally skilled, why can’t developing countries produce finished goods instead of depending on the industrial North?
A key reason lies in the dominance of the U.S. dollar. The U.S. exports inflation to other countries through the dollar — a currency not backed by real assets — and imports real goods and services in return.
Article explaining Financial Imperialism due to US Dollar
The Need for Stablecoin Diversity
India should promote not just a rupee-pegged stablecoin, but also asset-backed cryptocurrencies — for example, coins backed by gold or silver, secured through government regulation.
It is extremely difficult to build a trustworthy precious metal–backed crypto without state support, but such coins can stabilize the economy and hedge against inflation. With government-backed gold and silver stablecoins, money would remain secure and transparent, rather than being corrupted by private companies printing unregulated stablecoins.
Love for USD pegged stable coin by the crypto community must end