Gold-backed stablecoin could unlock India's wealth
Nikhil Kamath, co-founder of Zerodha, has proposed a gold-based stablecoin designed to monetize India's substantial idle wealth held in physical gold. The proposal addresses a critical economic challenge: India holds approximately 25,000 tonnes of gold, much of it stored without generating returns for owners.
A gold-backed stablecoin would allow Indians to tokenize their physical gold holdings, enabling liquidity and investment opportunities while maintaining asset security. This innovation could tap into a massive untapped market, transforming dormant wealth into productive capital that circulates through the economy.
The proposal gains relevance as blockchain technology increasingly attracts institutional adoption.
