At the heart of Mumbai’s vibrant fintech showcase earlier this month, the kingdom of digital payments rolled out the red carpet but carefully left free-ranging cryptos and stablecoins at the threshold. As the Global Fintech Fest 2025 (GFF) convened over 100,000 participants and 800 speakers from across the globe, two topics dominated international financial headlines yet remained conspicuously absent: cryptocurrencies and stablecoins.
Despite the event’s timing, which overlapped with Bitcoin just achieving a fresh all-time high in excess of US$125,000, the subject of digital assets was politely avoided. The conference guidelines requested that speakers steer clear of cryptographic, political, and religious commentary. In place of broad crypto discourse, the spotlight centred on the homegrown e-rupee (India’s central bank digital currency) and a raft of fintech product launches, including wallets and biometric payment innovations.
India’s fintech funding data underscores the impact: venture capital invested in Indian fintech firms fell to approximately US$3.5 billion in 2024, down sharply from its 2021 peak of nearly US$9.2 billion. Reports suggest that many local startups and high-risk fintech ventures are choosing to incorporate abroad, a move that could potentially hinder India’s aspirations to become a global hub for digital finance.
Why the wariness? Two key dimensions stand out. Firstly, India fears stablecoins—typically pegged to the US dollar or other major currencies—could fragment its domestic payment architecture, especially the widely used Unified Payments Interface (UPI). A government document warned that unregulated digital tokens may undermine monetary sovereignty and financial-system stability.
Secondly, the debate comes at a critical juncture for India’s fintech ecosystem. On the one hand, the country aims to drive innovation through Payments 2.0 and open banking frameworks; on the other, it must safeguard integrity, compliance, and financial inclusion standards.
There is certainty in the message, which can provide clarity to banks, sandbox fintechs and regulators alike. Controlled pilots such as the e-rupee and tokenised deposit frameworks reflect a calibrated approach to digital-money innovation. India thus may avoid some of the volatility, consumer risk and cross-border arbitrage that have plagued global crypto markets.
However, the trade-off is real. Global stablecoins now amount to more than US$300 billion in market capitalisation, and the broader cryptoasset universe is valued north of US$4 trillion. By sitting on the sidelines, Indian fintechs risk missing out on emergent business models such as programmable money, tokenised payment rails and cross-border micro-payments using stablecoin infrastructure. More fundamentally, regulatory dragging may hamper the country’s ability to claim leadership in the fintech race.
For now, India’s cautious-by-design policy stance reflects its decision to leave stablecoins and crypto on the fringes of its fintech gala. The government appears to favour gradualism: build the regulated digital currency ecosystem first, then consider broader token-based innovations once safeguards are in place.
With fintech investment already slowing and startups citing regulatory uncertainty as a deterrent, India’s next moves in the digital-assets space may prove as critical as its big fintech conference.
Building a Common Digital Finance Identity Across Borders
At the Commonwealth Union, we believe the true potential of finance and technology lies in their ability to connect and collaborate across borders.
With this in mind, we are building strategic alignments between governments, financial institutions, and technology innovators through our dedicated Blockchain Network. The purpose of this initiative is to facilitate greater international coordination, new cross-border potential, and focused investment flows into the places where they can make the most impact.
True to this vision, we are poised to launch a Digital Banking Network—a network that will render financial services more inclusive and accessible across the Commonwealth and MENA regions.
If you are keen to learn more or our mission resonates with you, we would love to connect. Please feel free to contact us at Info@commonwealthdigitalbankingclub.com
