Indians Abroad Use Stablecoins for Remittances
Some Indians working overseas are sending money home using stablecoins like USDT. Instead of traditional banks or money transfer services, they use digital coins pegged to real currencies such as the US dollar.
Although still small, this method is gaining attention. USDT (Tether) trades in India at a 4–5% premium over the official dollar rate. This price gap creates a profit opportunity for remitters.
How Stablecoin Remittances Work
USDT is issued by Tether and equals one US dollar. In India, one USDT sells for about ₹93, while one dollar exchanges at ₹88.6, offering an extra ₹4–5 per USDT.
Money changers abroad buy USDT in places like Dubai or New Jersey instead of wiring dollars. They transfer tokens to digital wallets in India.
The Indian recipient then sells USDT to local crypto buyers through peer-to-peer deals or exchanges. Some avoid tax deductions while others pay taxes but still profit.
This process is faster and cheaper than bank transfers but operates outside formal regulation.
RBI’s Approach and Future Outlook
The Reserve Bank of India (RBI) remains cautious about private cryptocurrencies. It is developing its own digital rupee (CBDC), fully controlled by the central bank.
Many Indians work in the UAE, which plans a Dirham-backed CBDC. Linking these CBDCs could simplify legal remittances between Gulf countries and India.
India’s Finance Minister urged global leaders on October 4 to prepare clear regulations for stablecoins. This shows growing recognition of digital assets’ global role.
Private companies are also exploring INR-backed stablecoins. These could enable cheaper, faster remittances but will face strict regulatory oversight.
Meanwhile, Indian regulators like SEBI are tightening rules on digital assets, including digital gold. Experts say this signals preparations for a structured framework covering all tokenized assets.
For now, stablecoin remittances remain small and unregulated. The RBI is monitoring risks and may favor the digital rupee as a future remittance standard.
