India's Debt-Backed ARC Token Eyes Tentative Q1 2026 Debut

India's Asset Reserve Certificate (ARC), a stable digital asset backed 1:1 by the Indian rupee, is set for a tentative launch in Q1 2026. Developed by Polygon and Anq, the ARC aims to mitigate liquidity outflows into dollar-backed stablecoins, preserving India’s economic stability. The ARC will only be minted when issuers acquire cash equivalents, ensuring transparency and compliance. It operates alongside the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC), maintaining regulatory standards while fostering innovation in payment solutions. This framework is designed to protect monetary sovereignty while allowing business transactions without full currency convertibility. Importantly, only authorized business accounts can mint ARC tokens, aligning with capital account restrictions. As global concerns rise over outflows to dollar-backed stablecoins, ARC represents India's proactive response to safeguard its financial ecosystem.

Source 🔗