ARC Coin: The First Regulated Rupee in India 2025
ARC Coin: The First Regulated Rupee in India 2025:- According to people familiar with the situation, India's Asset Reserve Certificate (ARC), a fully collateralized stable digital asset created by India-based fintech company Anq and Ethereum scaling and infrastructure development behemoth Polygon, may launch in the first quarter of 2026, CoinDesk was informed.
Each ARC token will trade 1:1 with the Indian rupee, according to sources, and will only be issued when issuers obtain cash or cash equivalents like cash balances, government securities, or fixed deposits. This configuration addresses issues frequently found in foreign-backed stablecoins or speculative tokens by guaranteeing transparency, security, and compliance.
The RBI's Central Bank Digital Currency continues to be the final settlement layer in this two-tier system, protecting monetary security and sovereignty. Simultaneously, the private sector runs the platform that encourages responsible innovation in remittance systems, programmable transactions, and payment solutions in a setting that complies with regulations.
Each ARC token will trade 1:1 with the Indian rupee, according to sources, and will only be issued when issuers obtain cash or cash equivalents like cash balances, government securities, or fixed deposits. This configuration addresses issues frequently found in foreign-backed stablecoins or speculative tokens by guaranteeing transparency, security, and compliance.
In essence, ARC is intended to keep liquidity and innovation within India's domestic economy while simultaneously stimulating demand for public debt instruments by preventing liquidity outflow into dollar-backed stablecoins.
RBI And CBDC
By acting as a regulated interaction layer created by the private sector, the proposed digital token will supplement the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC).
The RBI's Central Bank Digital Currency continues to be the final settlement layer in this two-tier system, protecting monetary security and sovereignty. Simultaneously, the private sector runs the platform that encourages responsible innovation in remittance systems, programmable transactions, and payment solutions in a setting that complies with regulations.
Within the confines of India's financial and regulatory framework, this framework guarantees robust control over the monetary base by upholding central oversight.
According to sources, the ARC will be in line with the partial convertibility of the rupee, which is limited for capital account transactions in order to preserve economic stability but fully convertible for current account transactions like trade, business payments, and remittances.
By enabling payments for commercial transactions without requiring complete convertibility, the stable digital token will accomplish this. Crucially, only business accounts will be permitted to mint ARC tokens, guaranteeing adherence to the regulations governing individual foreign exchange transactions under the Liberalised Remittance Scheme (LRS).
According to sources, the ARC will be in line with the partial convertibility of the rupee, which is limited for capital account transactions in order to preserve economic stability but fully convertible for current account transactions like trade, business payments, and remittances.
By enabling payments for commercial transactions without requiring complete convertibility, the stable digital token will accomplish this. Crucially, only business accounts will be permitted to mint ARC tokens, guaranteeing adherence to the regulations governing individual foreign exchange transactions under the Liberalised Remittance Scheme (LRS).
In order to further strengthen controlled access and regulatory compliance, ARC's ecosystem will employ Uniswap v4 protocol hooks to limit token swaps to whitelisted addresses only.
Following the Trump administration's pro-crypto regulatory actions, India is pursuing a sovereign stablecoin amid growing concerns about capital outflows from emerging markets into dollar-backed stablecoins.
Following the Trump administration's pro-crypto regulatory actions, India is pursuing a sovereign stablecoin amid growing concerns about capital outflows from emerging markets into dollar-backed stablecoins.
Significant liquidity shifts away from emerging economies were raised by the historic GENIUS Stablecoin Act, which legalized dollar-backed stablecoins.
As savers increasingly shift to dollar-backed stablecoins, Standard Chartered recently cautioned that emerging market banks may experience deposit outflows of up to $1 trillion over the next three years.
As savers increasingly shift to dollar-backed stablecoins, Standard Chartered recently cautioned that emerging market banks may experience deposit outflows of up to $1 trillion over the next three years.
In addition to the RBI's Central Bank Digital Currency, the ARC will function within a two-tier system.
Jishan Khan
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