- Coinbase CEO Brian Armstrong says India is losing the stablecoin market to USD-backed stablecoins due to a lack of policy.
- He adds that he would support a Digital Rupee in stablecoin format.
- India has one of the most punitive crypto taxation policies, with a 30% rate and no profit-loss offset.
Coinbase CEO Makes Bold Statement
Coinbase CEO Brian Armstrong has said that India loses in stablecoin markets due to the lack of an official Rupee stablecoin. He added that the lack of policy will lead to US Stablecoins dominating India’s market.
He further added that legislative backing helped US stablecoins dominate global markets.
It should be noted here that India is one of the largest remittance recipients in the world. However, traditional channels like SWIFT and Western Union take days, if not weeks, to transfer funds, whereas stablecoin transfers take roughly 2-3 seconds (based on my personal experience).
Why doesn’t India Have Any Official Stablecoin?
The lack of policy is attributed to the lack of global consensus. The Government of India has reiterated its commitment to following the global consensus on crypto policymaking. The Indian authorities have created safeguards in licensing and taxation but fall short of proactive policymaking, as they view cryptocurrency as a potential tool for money laundering and other financial crimes.
Historically, during the initial years of crypto policy-making, India saw cryptocurrencies as a tool for money laundering and even banned cryptocurrencies (via the RBI) in 2018. However, judicial intervention soon opened the country’s crypto markets.
Since 2022, India has followed a punitive tax policy for cryptocurrencies, taxing them at a high rate of 30% without allowing profit-loss offset. Furthermore, there is a 1% TDS on every transaction.
Disclaimer: Decrypted brings you information for purely informative purposes and does not provide any financial advice. Kindly consult an advisor before investing or trading.