Nikhil Kamath, co-founder of Indian startup Zerodha, has publicly warned that dollar-denominated currencies pose a long-term threat to India, while floating the idea of a gold-backed stablecoin as the country’s best alternative.
Writing on X, Kamath explained that the world still revolves around the dollar but pointed to a quiet shift taking place on the ground. Countries are buying gold, selling non-dollar currencies, and building international payments through SWIFT. India’s UPI system, he said, has been a unique example of building financial independence.
Caution on Dollar Stablecoins
Kamath expressed his concern specifically to those who support a dollar-based currency in India. His role was specific. The success of crypto being pegged to the dollar is a bad idea for India in the long run as it would increase dependence on the US currency at a time when the country is trying to reduce that dependence.
He paid tribute to the Modi government and Indian authorities for resisting pressure on this front, saying he made the call despite being pressured to go elsewhere.
Gold Stablecoin shares recommendations
Instead of dismissing stablecoins entirely, Kamath raised a different possibility. India has the largest domestic gold reserves in the world, most of which are held in homes without any recourse. A stablecoin backed by gold, he said, could generate unused cash and return dividends to owners and avoid dependence on the dollar entirely.
Kamath was careful to present the idea as a question rather than a firm opinion, saying he didn’t know enough about the mechanics to make a strong case but wanted to open the discussion.
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