Crypto Remittance in India Rises as NRIs Ditch Banks for USDT

How Stablecoins Like USDT Are Transforming Crypto Remittance in India

Have you noticed how more Indians living abroad are sending money home using crypto instead of banks? The reason is rather simple: it gives them more money. In the country, the stablecoin Tether (USDT) trades for 4–5% more than its actual value in dollars. 

That means every dollar sent as digital currency brings extra rupees in comparison to traditional remittance. And that small difference has made Crypto Remittance in India a growing trend among non-resident Indians. 

Source: X (formerly Twitter) 

How Crypto Transfers Give Better Value

Let's take an example given by the Economic Times: if a person sends $1,000 via a bank, his family in India receives around ₹ 88,600. But if the same person buys USDT abroad and sells it in India, that amount shoots up to approximately ₹ 93,150. And here it is, around ₹ 4,500 extra without any extra effort. 

This is because, over a period of time, many money changers and small transfer operators have quietly started using digital currency. Instead of routing the monetary amount through banks, they move USDT from one wallet to another. The process is quicker, cheaper, and both the sender and receiver end up with more money in hand.

How the New Crypto Remittance System Works

Here's what happens behind the scenes: the worker abroad walks into the money transfer shop. The operator, instead of routing money through a bank, buys USDT and sends it to his contact in the country. The person in India sells the stablecoins either to a local buyer or to a cryptocurrency exchange. Currently USDT Tether has a market cap of $183.44B. 

Both sides make a small profit, the sender’s family gets more rupees, and the operator earns a small cut. Transfers are completed in minutes, as opposed to days for banks, which charge more. According to experts, 3–4% of country’s total remittances have already shifted to stablecoins. 

Adding to India’s growing crypto adoption, Polygon and Anq recently announced the country’s first-ever rupee-backed stablecoin, ARC. Fully supported by government securities, this project aims to make digital transfers safer, regulated, and perfectly aligned with India’s financial system.

The Legal and Regulatory Side

This move is gaining momentum, though it is happening in a legal gray area. The central bank RBI has still been very skeptical about cryptocurrencies and prefers maintaining control through CBDCs. 

The RBI plans to make international transfers easier using digital versions of national currencies, like an e-Rupee linked to the UAE's Dirham. But that system is still in the process. For now, digital currency remains the faster, easier, sometimes riskier option for NRIs.

What's Next for Crypto Remittance in India

Even though the numbers are still small, this trend shows what’s coming next. A few Indian startups have already begun exploring the INR-backed stablecoins that make cross-border payments completely digital and legal. For now, crypto remittance in India is like hawala, updated for the modern world: faster, cheaper, and direct. 

As stablecoins become more common, the country may soon see a huge change in the way families receive money from loved ones abroad.