ARC Stablecoin Ignites Bold Defense Against $1T Outflow

• India’s answer to the increasing liquidity shift to dollar-backed stablecoins is the ARC stablecoin.
• Essentially, a co-product of Polygon and Anq, it will be introduced in early 2026 and backed by the rupee at a 1:1 ratio.
• ARC through a two-tier digital currency system emphasizes India’s monetary independence.

India is constructing something durable in a rapidly changing world. The Asset Reserve Certificate, also known as the ARC stablecoin, is the primary element of this project. It is straightforward, robust, and has a 1:1 backing with the Indian rupee. If everything goes according to plan, the launch will take place during the first quarter of 2026. It serves as a protection for India against the dollar’s prolonged dominance. Moreover, it is a method for the country to retain the flow of money, ideas, and innovations.

Polygon-a big player in the Ethereum scaling world-and Anq-a local fintech powerhouse-are the backers of this project. They assure that the project will be transparent and secure. The backing for an ARC stablecoin issuance would be cash or cash equivalents such as fixed deposits, government securities, or plain cash balances. No secrets. No bubbles.

The transparency provided by this issue clarifies the concerns of countless foreign-supported stablecoins, which are the ones that slowly extract funds from developing countries. The ARC stablecoin is aimed at putting an end to that gradual drainage.

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ARC Stablecoin and the Two-Tier Digital Framework

The ARC stablecoin is positioned as a partner to the Reserve Bank of India’s digital currency, rather than a predecessor. The RBI’s Central Bank Digital Currency still holds the power and is the settlement layer that ensures sovereignty. The private sector creates ARC as the interaction layer but it stays within the regulations of the country.

The two-tier system grants an advantage to India. It ensures strict supervision and at the same time permits creation of new ideas. Such technologies as programmable payments, speedy remittances, and intelligent transaction rails can all be developed further. Nevertheless, the backbone still remains protected, courtesy of the RBI.

ARC is in line with India’s enduring rule, partial convertibility of rupee. The currency is accessible for trading and commercial purposes, but at the same time, it is not totally open and thus, limited movement of capital is maintained.

The stable token will aid the companies in doing their payments without having to go the full convertibility route. Only the business accounts are allowed to produce ARC stablecoin. This thus makes it impossible for individuals to go outside the Liberalised Remittance Scheme and also prevents the occurrence of unregulated flows.

Security is fundamental to the system. ARC will limit swap transactions to authorized addresses by using Uniswap v4 hooks. All transactions will be confined to a restricted area.

ARC Stablecoin in a World Chasing the Dollar

Following the recent changes in the U.S. regulatory environment, the world is after dollar-backed stablecoins more than ever. The GENIUS Stablecoin Act has led to a significant increase in demand. Standard Chartered has alerted that as much as $1 trillion might be moving out of the emerging markets in just three years.

India wishes not to be caught up in that chaos. ARC is the country’s safety, solid, independent, and intended for a digital era that sometimes overlooks the importance of being rooted.

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