Stablecoins are the new oil. And India is sitting on untapped reserves

In the 20th century, oil reshaped geopolitics and global commerce. In the 21st century, data took the crown. But in the coming decade, stablecoins—the blockchain-based digital equivalents of fiat currencies—are emerging as the new oil: powering a decentralised economy, lubricating global finance, and redefining value transfer across borders.

At its core, a stablecoin is simple: a digital token pegged to a real-world currency like the US dollar or rupee. But its implications are transformative. Stablecoins settle instantly, work 24/7, and slash cross-border transaction costs by up to 90%. No wonder global giants like PayPal, Visa, and Stripe are integrating stablecoins into their payment rails. In fact, the transaction volume of stablecoins now rivals Visa’s annual volume, crossing over $10 trillion in 2023 alone.

So, where does India stand in this revolution?

India is the world's largest recipient of remittances, with over $125 billion flowing in annually. Yet, traditional rails like SWIFT remain slow and expensive. Stablecoins can drastically reduce costs and delays and offer financial access to underserved users globally. However, India’s approach remains cautious, driven by concerns over capital controls, monetary sovereignty, and regulatory clarity.

But here’s the opportunity: India doesn’t need to wait for global stablecoins. It can either issue its own, regulated, INR-backed stablecoins that are programmable, auditable, and integrated into the banking stack or allow private players to innovate, at least in the sandbox, before allowing them to grow independently. This would allow India to export digital rupees, power cross-border trade, and turn the stablecoin opportunity into a tool of strategic soft power, just like UPI was for domestic payments.

We’re not talking about speculation or volatility. We’re talking about a trust-based, programmable layer for finance, enabling instant settlements between exporters, SMEs, freelancers, and even governments.

As the world moves toward tokenized finance, India has two choices: wait and watch, or build and lead. With a strong digital identity infrastructure, a deep developer ecosystem, and a globally respected central bank, India has all the ingredients to make stablecoins our next great fintech export.

The oil is right beneath our feet. All we need to do is drill.

(Views expressed by the expert are his/her own.)