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India sidesteps crypto and stablecoins at world’s largest fintech summit

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At India’s massive fintech conference in Mumbai, attended by over 100,000 participants and 800 speakers, two global financial buzzwords were conspicuously absent: cryptocurrencies and stablecoins. Despite Bitcoin’s record-breaking surge past $125,000, the three-day event — headlined by the prime ministers of India and the U.K. — avoided any discussion of digital assets amid the government’s cautious regulatory stance.

A speaker document obtained by Reuters explicitly instructed participants to “avoid political, crypto, religious, or personal remarks”, underscoring India’s reluctance to embrace the sector. While economies like Japan, Hong Kong, and Singapore are racing to become crypto hubs, India remains hesitant, opting instead to spotlight its central bank digital currency, the e-rupee, and other fintech innovations.

The Reserve Bank of India showcased pilots for deposit tokenisation and fintech sandboxes, while companies like PayPal and Revolut unveiled new products tailored for the Indian market.

Experts say the policy vacuum is chilling innovation. “Regulators need an iterative approach instead of complete aversion to stablecoins,” said Joseph Sebastian of Blume Ventures, who suggested limited adoption through U.S. dollar stablecoin remittances.

India’s fintech funding fell to $3.5 billion in 2023, its lowest since 2020, as entrepreneurs increasingly incorporate overseas to escape regulatory uncertainty. “It’s becoming real whether we like it or not,” said Vivekdeep Gupta, a digital assets consultant.

Dubai’s Emirates Signs Preliminary Deal to Add Crypto Payments via Crypto.com

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Emirates airline has signed a preliminary agreement with Crypto.com to enable customers to pay for flights using the crypto trading platform’s payment service, the carrier’s parent company announced on Wednesday. The partnership is expected to launch next year and aims to attract younger, tech-savvy travelers who prefer using digital currencies, said Adnan Kazim, Emirates’ deputy president and chief commercial officer.

The United Arab Emirates (UAE) has rapidly positioned itself as a global hub for cryptocurrency businesses, with numerous firms establishing operations or expanding in the region. The country already permits cryptocurrency payments in sectors such as real estate, education fees, and transportation.

Dubai, in particular, has been proactive in regulating the virtual asset industry, establishing the Virtual Assets Regulatory Authority (VARA) in 2022. The Dubai Multi Commodities Centre (DMCC), one of the city’s largest free zones, currently hosts over 650 crypto companies.

Other Gulf-based airlines have also embraced cryptocurrencies recently. For example, Dubai-listed Air Arabia announced in May that it would accept AE Coin, a UAE dirham-backed stablecoin, for flight bookings.

The Emirates-Crypto.com deal marks a significant step toward integrating cryptocurrencies into mainstream airline payments and reflects the broader trend of digital currencies gaining traction in the Gulf region.

Chinese Tech Giants Lobby for Offshore Yuan Stablecoin to Challenge U.S. Dollar Dominance

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Chinese technology leaders JD.com and Ant Group are pressing the People’s Bank of China (PBOC) to authorize yuan-pegged stablecoins issued in Hong Kong, aiming to boost the international use of the Chinese currency and counter the growing influence of U.S. dollar-linked stablecoins. This push reflects a strategic effort to expand the yuan’s role in global digital finance and cross-border payments amid increasing competition with the U.S.

Stablecoins are cryptocurrencies pegged to stable assets like fiat currencies. Currently, over 99% of stablecoins are linked to the U.S. dollar, and their blockchain-based technology allows fast, low-cost, and borderless transactions, potentially disrupting traditional financial systems. The global stablecoin market is valued at about $247 billion and is expected to grow to $2 trillion by 2028.

Both JD.com and Ant Group plan to launch stablecoins backed by the Hong Kong dollar following the region’s new legislation effective August 1. However, they argue that yuan-based stablecoins issued offshore—particularly in Hong Kong—are urgently needed to promote the yuan’s internationalization. This would mark a significant policy shift in Beijing’s stance on cryptocurrencies, which were banned domestically in 2021.

Industry voices, such as Wang Yongli of Digital China Information Service Group and former Bank of China official, highlight the strategic risks of the yuan falling behind the dollar in cross-border payments. Currently, the yuan’s share of global payments has dropped to 2.89%, far below the dollar’s dominant 48.46%.

The lobbying coincides with Hong Kong and the U.S. racing to establish regulatory frameworks for stablecoins. Chinese exporters increasingly use dollar-pegged stablecoins like Tether (USDT) due to capital controls and currency volatility risks at home, fueling demand for alternative payment tools.

While the PBOC has yet to officially respond, advisors and officials acknowledge the challenges posed by the digital currency surge and have hinted that offshore yuan stablecoins are under consideration. Ant Group is preparing to seek stablecoin licenses in Hong Kong and Singapore, with JD.com planning similar applications globally to facilitate foreign exchange and cross-border payments.

JD.com also points out that pegging stablecoins to the Hong Kong dollar—tied to the U.S. dollar—does little to promote the yuan’s use, thus proposing a yuan stablecoin issuance pilot first in Hong Kong, then expanded to China’s free trade zones, a suggestion reportedly well received by regulators.