India’s debt-backed stablecoin challenge to US dollar dominance explained

India’s debt-backed stablecoin challenge to US dollar dominance explained
As governments worldwide debate the merits and dangers of digital currencies, India appears poised to launch its own state-backed stablecoin that uses government debt as collateral.

Proponents argue that the Asset Reserve Certificate (ARC) could hasten the global drive towards de-dollarisation, lower India’s borrowing costs and create a “virtuous cycle” for public funding by diversifying the country’s investor base.

By tying the token to sovereign debt, developers aim to create a transparent system that complements the central bank’s monetary framework and limits outflows of local liquidity into dollar-backed cryptocurrencies.
The ARC, under development by international blockchain giant Polygon and India-based fintech Anq, would function as a stablecoin: a cryptocurrency engineered to maintain a steady value, avoiding the volatility that plagues speculative digital assets like bitcoin.

Every unit of the regulated digital token would be backed one-to-one by Indian government securities or treasury bills – debt instruments issued by the state to finance public spending – maintaining a steady value pegged to the rupee while operating on private blockchain infrastructure.

Its backers say that by tying the digital token directly to sovereign debt, India could keep local liquidity at home instead of letting it leak offshore.

“Success could establish India as the template for upholding private blockchain innovation while maintaining financial sovereignty,” Benjamin Grolimund, general manager of cryptocurrency exchange Flipster, told This Week in Asia.

ARC could enable “significant crypto market capture” for the world’s most populous nation, he said. “India’s move asserts the trend towards de-dollarisation as other [Asia-Pacific] hubs advance their own currency-backed stablecoin frameworks”.

‘Legal limbo’

India, home to one of the world’s largest crypto user bases, has seen surging adoption among both its vast diaspora and a young, digitally native population.

Digital currencies are helping to meet the diaspora’s remittance needs, while young Indian adults are increasingly embracing crypto trading, according to a recent Chainalysis report.

Yet cryptocurrencies remain unregulated in the country, neither illegal nor formally sanctioned, following a 2020 Supreme Court decision that overturned a ban by the central bank amid concerns about its potential for money laundering and terrorism financing.

The ARC’s success could depend on whether India can establish regulatory frameworks to address consumer protection, market conduct and financial stability.

Analysts note the need for legislative clarity: would ARCs be recognised as digital government securities or as payment instruments? Would oversight fall solely under the central bank or be shared with the Securities and Exchange Board of India?

Defining the regulator will be crucial, as will clarifying if non-residents can hold the token, whether settlements can occur offshore and what mechanisms exist for clean conversion between rupees and foreign currency.

“Without statutory backing, disputes over redemptions, custody failures or censorship could land in legal limbo,” warned Anndy Lian, a Singapore-based adviser on blockchain policy.

Risks vs rewards

While Singapore, Hong Kong and Japan have experimented with similar digital tokens, India’s ARC could be the first public, tradeable stablecoin issued privately but backed by state assets.

“India may do something no other major economy has attempted; turn its government securities into a programmable digital asset,” said Raj Kapoor, chairman of the India Blockchain Alliance.

Such a token would align with the Indian central bank’s push to introduce a digital currency and secure the benefits of crypto without dollar-denominated dependence, Kapoor said.

Success is far from certain, however. Overcentralisation risks rebranding government bonds without meaningful innovation, while under-regulation could introduce legal and financial vulnerabilities.

“The risk is that, if over-controlled, it becomes just dematerialised G-Secs [government securities] in a new wrapper with little innovation,” Kapoor said.

But if designed with care, it could be the catalyst that pulls decentralised finance and global liquidity into India’s bond market, strengthening the rupee and setting a new global benchmark.

 

Source: https://www.scmp.com/week-asia/economics/article/3333378/indias-debt-backed-stablecoin-challenge-us-dollar-dominance-explained?registerSource=loginwall

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Crypto’s fragile comeback: Oversold RSI, Solana ETFs, and the US$86K Bitcoin test

Crypto’s fragile comeback: Oversold RSI, Solana ETFs, and the US$86K Bitcoin test

Digital assets climbed 1.93 per cent, recovering from a steep seven-day slide that saw the sector shed 8.53 per cent of its value. This bounceback came against a broader backdrop of risk aversion. The S&P 500 fell 0.83 per cent, the NASDAQ dropped 1.21 per cent amid AI valuation concerns, and the Dow Jones Industrial Average slid 1.07 per cent. The caution permeating traditional markets has spilt over into crypto, yet structural developments within the digital asset space, particularly around Solana, Binance, and technical positioning, provided enough tailwind for a short-term recovery.

The most potent catalyst emerged from the institutional front: the launch of spot Solana exchange-traded funds. Fidelity and Canary Capital debuted their Solana ETFs, FSOL and SOLC, on the NYSE and Nasdaq, respectively, drawing over US$30 million in first-day inflows. Unlike earlier crypto ETF structures that offered pure price exposure, these funds incorporate staking mechanisms, allowing investors to earn yield while holding the asset.

This innovation speaks directly to institutional appetite for income-generating digital assets in an environment where risk-free rates remain elevated but volatile. The inclusion of staking functionality elevates Solana beyond mere speculative exposure. It positions SOL as a yield-bearing asset within a broader portfolio framework, blurring the line between traditional fixed income and decentralised finance.

Crucially, Solana’s price held firm near US$183 despite Bitcoin’s recent turbulence, suggesting that ETF approval has conferred a degree of regulatory legitimacy not previously enjoyed by most altcoins. While Ethereum still commands the lion’s share of institutional attention among non-Bitcoin assets, Solana’s ETF momentum may signal a widening of the institutional aperture, potentially heralding the early stages of a broader altcoin renaissance if sustained.

Parallel to this structural shift, Binance continued to assert its dominance as the central node of global crypto liquidity. In the third quarter of 2025, Binance recorded net inflows of US$14.8 billion, a staggering 158 times more than its closest competitors. This figure is not merely a testament to user trust but reflects a deliberate strategy. The exchange has secured 21 regulatory licenses worldwide and holds US$31 billion in proof-of-reserves, positioning itself as a compliant gateway for both retail and institutional capital.

Recent partnerships, such as the integration with PayPay Japan, have further cemented its role in bridging mainstream finance with digital asset markets. In an environment where many crypto-native platforms struggle with regulatory headwinds and capital flight, Binance’s ability to attract and retain capital underscores a market preference for scale, security, and regulatory clarity, even within the centralised exchange model. This liquidity concentration has a direct impact on market dynamics.

Binance now accounts for 41 per cent of global crypto trading volume, according to BTCC data for 2025. Such dominance means that price discovery, especially during volatile periods, increasingly hinges on activity within Binance’s order books. The exchange’s inflows have effectively offset bearish sentiment elsewhere, including outflows from other crypto ETFs and risk-off behaviour in equities, acting as a counterweight to broader market pessimism.

From a technical standpoint, the rebound also found fertile ground in oversold conditions. The 14-day Relative Strength Index for the overall crypto market cap dipped to 34, entering territory historically associated with short-term buying opportunities.

Concurrently, the MACD histogram showed a narrowing of bearish momentum, falling to negative US$20.58 billion, a signal that downward pressure was beginning to ease. Traders responded swiftly, pushing the market higher in a classic relief rally. This technical bounce carries caveats. Perpetual futures funding rates across major assets remain subdued at a positive 0.0056 per cent, indicating that leverage appetite has not returned in force.

In other words, while spot traders capitalised on the dip, derivatives markets remain cautious, wary of committing to directional bets ahead of key macro events, including Nvidia’s earnings, which loom large given the chipmaker’s role as a bellwether for AI-driven equity performance. The absence of aggressive long positioning suggests that this rally is more a function of short-covering and mean reversion than a conviction-driven shift in sentiment.

Beneath these immediate drivers lies a more fragile undercurrent. The Crypto Fear & Greed Index currently sits at 16 out of 100, deep in extreme fear territory. This level of pessimism has historically preceded both capitulation events and eventual recoveries, but context matters. Today’s fear coincides with weakening global risk sentiment, driven by multiple crosscurrents. Treasury yields have dipped slightly, with the 10-year at 4.11 per cent and the 2-year at 3.57 per cent, reflecting safe-haven demand, yet the dollar remains flat, and the yen has weakened past 155 against the greenback on expectations of further Japanese stimulus.

Geopolitical tensions between China and Japan continue to rattle Asian markets, as evidenced by the Nikkei’s 3.2 per cent drop just one day prior. Meanwhile, oil prices rose 1.1 per cent on renewed Russia sanctions risk, and gold gained as investors sought traditional hedges. In this environment, crypto’s 1.93 per cent gain appears resilient, but it remains tethered to the fate of broader risk assets, particularly tech stocks.

The critical question now is sustainability. Can altcoins, led by Solana, maintain upward momentum if Bitcoin retests its US$86,000 support level? The answer likely hinges on two variables: continued Solana ETF inflows and shifts in Bitcoin dominance. The ETH/BTC ratio, a traditional barometer of altcoin season potential, has yet to show convincing recovery, suggesting that capital rotation into alternatives remains tentative.

Moreover, while Solana’s ETF structure offers yield through staking, its long-term appeal will depend on consistent institutional adoption and regulatory stability, not just initial enthusiasm. Binance’s liquidity dominance provides a buffer, but it also concentrates systemic risk. Any regulatory misstep or loss of confidence in the exchange could trigger rapid outflows that overwhelm even robust technical setups.

In conclusion, the crypto market’s recent rebound is real but fragile. It draws strength from three distinct pillars: institutional validation via Solana ETFs, centralised liquidity via Binance’s inflows, and technical oversold conditions inviting short-term buyers. These bullish forces operate within a macro framework tilted toward caution, marked by AI valuation fatigue, geopolitical friction, and a risk-off posture in both equities and fixed income. The rally should not be mistaken for a trend reversal but rather a tactical pause in a broader correction.

For the rebound to evolve into a sustained recovery, it will need either a catalyst that reignites global risk appetite or evidence that crypto’s fundamentals, particularly around regulated yield and institutional adoption, are decoupling from traditional market sentiment. Until then, traders and investors alike must tread carefully, watching Solana ETF flows, BTC dominance, and the ever-sensitive US$86,000 Bitcoin support level as leading indicators of what comes next.

 

Source: https://e27.co/cryptos-fragile-comeback-oversold-rsi-solana-etfs-and-the-us86k-bitcoin-test-20251119/

 

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Quantum shockwave hits finance as Aussie companies join the race

Quantum shockwave hits finance as Aussie companies join the race

If there’s one threat forming on the horizon of global finance, it’s not necessarily another banking crisis, it’s quantum computing.

Quantum computers aren’t just faster. They’re built on entirely different physics (superposition and entanglement), allowing them to process calculations that would take today’s supercomputers thousands of years … in mere minutes.

That power is a dream for scientists but for banks and payment networks, it’s a ticking time bomb.

That’s because the same quantum power that can simulate entire molecules in seconds can just as easily rip through the encryption walls protecting global finance.

All those locks guarding online payments, digital wallets (and now blockchain transactions) rely on public-key cryptography. Once quantum processors mature, and most experts say they will within a decade, those locks could snap open like cheap padlocks.

“Our financial systems face an existential threat from quantum computing’s ability to break widely used public-key cryptographic protocols,” said Singapore-based blockchain adviser Anndy Lian, warning that trillions in digital transactions are exposed.

Banks know it. Regulators are catching on.

And while some countries are already investing heavily in “quantum-safe” systems, much of the world still isn’t ready.

That gap has created an urgent opportunity for companies that can bridge today’s digital infrastructure with tomorrow’s quantum reality.

 

Aussie companies gearing up for quantum shift

Australia already has a few names making early moves.

Archer Materials (ASX:AXE) is one of the few public companies in the world developing a quantum chip that can operate at room temperature, which could be a game-changer for the industry.

Its flagship project, the 12CQ chip, aims to use carbon-based qubits, a very different approach from the ultra-cold superconducting systems favoured by giants like IBM and Google.

What makes Archer interesting is that it has already demonstrated the ability to detect and now fabricate individual qubits using standard semiconductor processes. If successful, it could mean quantum computing that fits on a normal circuit board.

Meanwhile, Sydney-based Diraq, though unlisted, has partnered with UNSW to advance silicon-based qubits, essentially trying to make quantum chips that speak the same language as today’s computers.

Another early mover is Codeifai (ASX:CDE), which has recently broadened its focus from product authentication into the much broader world of quantum-secure data.

 

Codeifai expands into quantum

Codeifai’s story started in product authentication, stopping counterfeit goods with scannable QR codes. But the company’s ambition has evolved fast.

In 2024, it launched ConnectQR, turning those codes into digital trust portals that verify products and track supply chains.

In 2025, Codeifai took a major leap forward by integrating GS1 Digital Link functionality into its ConnectQR platform, a technology that transforms ordinary barcodes into web-enabled smart data carriers.

It connects physical products directly to online information with a single scan, giving consumers instant access to verified product details and authenticity.

This move also saw Codeifai accepted as an Associate Alliance Partner of GS1 Australia, placing it at the forefront of the global transition from 1D to 2D barcodes and expanding opportunities for its high-margin SaaS ConnectQR business.

Now, the company is preparing for its biggest move yet… into quantum-secure payments and communications.

Earlier this month, Codeifai appointed seasoned payments executive Marcus Cann as chief strategy officer to lead the charge.

Cann’s background at Volt Bank and MOGOPLUS gives him deep roots in fintech and open-banking infrastructure, exactly the kind of experience needed to bridge finance and frontier tech.

“He [Cann] will work closely with our COO and myself as we navigate the company into an exciting new arena,” said Codeifai’s executive chairman, John Houston.

The appointment coincides with Codeifai’s potential acquisition of AntennaTransfer.io, an AI-backed, quantum-secure communications platform owned by Canada’s Credissential Inc.

Once the deal is approved at the company’s EGM on 8 December, it will be rebranded QuantumAI Secure.

 

Secure payments for the post-quantum era

Every time someone scans a QR code, approves a BNPL transaction, or signs a digital agreement, they’re relying on one unspoken assumption: that the system can’t be forged.

Quantum computing is about to test that assumption.

Codeifai’s QuantumAI Secure is designed to make sure that trust still holds. It features a payments gateway fortified with post-quantum cryptography, built so that even if someone intercepts transaction data today, it will remain unreadable decades from now.

The platform also enables file transfers that keep sensitive contracts and intellectual property sealed tight for years to come.

AntennaTransfer.io brings the communications backbone to transmit encrypted information across distributed networks, and that technology is now about to be folded into Codeifai’s ecosystem.

The expansion into encryption technology puts the company squarely in the path of one of the biggest transformations in tech history.

 

Source: https://stockhead.com.au/tech/quantum-shockwave-hits-finance-as-aussie-companies-join-the-race/

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