Polygon’s ARC: Potential for INR Stablecoin to Enhance India’s UPI Ecosystem
The post Polygon’s ARC: Potential for INR Stablecoin to Enhance India’s UPI Ecosystem appeared on BitcoinEthereumNews.com.
India’s Unified Payments Interface (UPI) dominates retail transactions with billions processed monthly, making an INR stablecoin unnecessary for everyday use. However, a compliant INR stablecoin like Polygon’s ARC could enable programmable payments, enhance cross-border flows, and integrate DeFi, potentially transforming India’s digital economy without disrupting existing rails. India’s UPI handles over 20 billion transactions monthly, outpacing global peers and questioning the need for parallel stablecoin systems. Stablecoin usage in India grows steadily, with $45 billion transferred last year, mainly for trading and remittances. Polygon’s Aishwary Gupta emphasizes regulatory compliance: “We don’t want a stablecoin the wrong way — it’s the government’s call, we just embrace the rules,” highlighting ARC’s potential for controlled innovation. Explore whether India needs an INR stablecoin amid UPI’s dominance. Learn about Polygon’s ARC project, regulatory hurdles, and future of programmable money. Dive into insights now for crypto-savvy updates. What is an INR Stablecoin and Why Consider It in India? An INR stablecoin is a cryptocurrency pegged 1:1 to the Indian rupee, backed by reserves to maintain stability for transactions and value storage. In India, it could bridge traditional finance with blockchain, enabling instant settlements and programmability. Despite UPI’s efficiency, an INR stablecoin offers unique advantages in global trade and DeFi, as explored by projects like Polygon’s ARC. How Does Polygon’s ARC Project Aim to Introduce a Compliant INR Stablecoin? Polygon’s ARC, or Asset Reserve Certificate, is a rupee-pegged deposit token launching in Q1 2026 on the Polygon chain, partnering with Anq for compliance. Unlike traditional stablecoins, ARC functions as an embedded transaction layer, restricted to regulated entities like banks and NBFCs for minting and custody. Aishwary Gupta, Polygon’s Global Head of Payments and RWA, explained in an interview at India Blockchain Week 2025: “The difference is that it becomes embed on the transaction layer and functions…
Filed under: News - @ December 6, 2025 8:15 am