Stablecoins Could Save Indians Over $60 Billion

Stablecoins:- India’s digital payments leadership is reshaping global finance. Yet, one layer remains stuck in inefficiency: cross-border transactions. Remittances and trade payments still rely on slow, expensive legacy rails. But that could soon change—with stablecoins poised to be the next breakthrough.

Stablecoins, digital tokens backed 1:1 by fiat currency and issued on public blockchains, are emerging as low-cost, high-speed alternatives to traditional banking infrastructure. They offer a compelling value proposition for India, where remittances top $125 billion annually and international trade exceeds $1.6 trillion.

Estimates suggest that Indian citizens and businesses could save over ₹5.7 lakh crore ($600 billion) every year by shifting to stablecoin-based settlement systems. The benefits are clear: reduced transaction fees, real-time settlements, fewer intermediaries, and enhanced transparency.

It becomes particularly appealing as remittances to India reached a record high of$135.46 billion in FY2024-25 – an increase of 14%.

How Stablecoins Cut Costs:

1. Remittance Optimization: Traditional channels charge 3.8% on average. For $125B in remittances, that’s nearly ₹3.95 lakh crore in fees. Stablecoins can reduce this to under ₹82,000 crore.

2. Trade Corridor Efficiency: With stablecoins streamlining FX conversions and compliance, over ₹2.5 lakh crore in savings can be unlocked across India’s $1.6T trade flows.

3. Operational Streamlining: Automated smart contracts eliminate many legacy overheads, like SWIFT messaging and reconciliation—reducing backend costs by up to 27%.

4. Liquidity & Speed: Unlike traditional banking, stablecoin networks run 24/7. Settlement finality improves from several days to under a minute.

5. Price Efficiency: Modern stablecoin FX rails show less than 5bps deviation from interbank rates, ensuring minimal slippage.

6. Onboarding Potential: Integration with UPI and ONDC could enable consumers and MSMEs to transact in stablecoins seamlessly, bridging on-chain and off-chain economies.

Also Read: Polygon Labs CEO on Stablecoins

A Strategic Opportunity for a INR-denominated Stablecoin

Global stablecoin settlement volumes exceeded $7 trillion in 2023, with usage rapidly expanding across Asia, the Middle East, and Latin America. As countries explore new digital currency corridors, India can position itself not just as a participant—but a leader. With Polygon as one of the most focused chain towards building the financial infrastructure and stablecoin movements, it could be the perfect choice for deployment.

By supporting a compliant INR-denominated stablecoin, India could:

– Boost offshore INR demand,

– Enable low-cost, instant international commerce,

– Expand its monetary influence in emerging markets, and

– Strengthen treasury reserves via foreign-held INR digital assets

Stablecoins aren’t just a new payment method, they represent a shift in how money moves across borders. With the right regulatory support and private-sector innovation, India has a chance to save billions and shape the future of global finance.