India's INR Stablecoin Launch Looms? Polygon CEO Weighs In

India To Launch INR Stablecoin, Says Polygon CEO

Amid growing discussions on India’s growing crypto industry, Polygon CEO Sandeep Nailwal expresses confidence in the imminent launch of an INR stablecoin. Sparking optimism among industry leaders, Nailwal predicted that the government will roll out a stable token pegged to the Indian currency in the next three months.

Will India Launch an INR-backed Stablecoin?

In a recent X post, Crypto India, a prominent crypto voice on X, shared insights on the Polygon CEO’s bullish forecast on the INR stablecoin launch. Now, the digital asset community on X is celebrating the news, with many industry leaders and community members sharing the update.

Reportedly, Sandeep Nailwal, the CEO of Polygon, expressed his optimistic views on India’s potential launch of its INR stablecoin. Speaking at a discussion on “Crypto Beyond Hype: Building the Future or Burning Cash,” Nailwal posited that India’s stable token launch is imminent. He stated, “I'm 100% sure that you're going to hear in three months that in India also somebody will launch INR stablecoin.”

Other prominent figures like CoinDCX CEO Sumit Gupta have also highlighted the significance of INR-backed stable tokens. As Coin Gabbar recently reported, Gupta posited that the country could save billions through such an initiative.

Regulatory Hurdles Ahead?

The cryptocurrency industry in the nation is still ambiguous, as the country has not yet legalized cryptocurrencies. Tax obligations are in place, with the government imposing a 1% TDS and 30% capital gains tax, one of the highest in the world. Highlighting this paradoxical situation, investor Chirayu Bagree stated,

“We are taxing crypto at a high rate, but we are not providing the protections that come with regulated markets. If we taxed it like stocks, with proper safeguards, the government could earn far more while keeping investors safe.”

Though the Supreme Court has directed the government to regulate the cryptocurrency industry, the country hasn’t taken any initiative. This lack of regulatory clarity has raised concerns about the digital asset market's growth prospects, casting doubt on the potential introduction of Indian currency stablecoins. Rashmi Deshpande, founder, Fountainhead Legal, noted,

“The absence of enforceable regulation---has left users vulnerable, especially when assets are transferred offshore without recourse. There is an urgent need for frameworks that mandate solvency norms, data disclosures and legal remedies within the country.”

However, the Polygon CEO argued that the country will introduce its INR stablecoin despite these regulatory hurdles. He noted that initial attempts might face setbacks, but they will ultimately pave the way for a successful debut.