New Delhi, May 14 -- As Nikhil Kamath advocated for a gold-backed stablecoin that could help monetise the vast amount of idle gold lying in Indian households and generate returns for investors, Ashish Singhal, Co-founder of CoinSwitch, responded that such products already exist globally.

However, he pointed out that the real challenge lies in "India's gold itself" - referring to issues around regulation, trust, storage, verification, and bringing household gold into the formal financial system.

Gold-backed stablecoins are functionally similar to fiat-collateralized stablecoins like Tether (USDT) or USDC (USDC).

For every token minted into circulation, the issuing company is supposed to keep an equivalent amount of real-world assets (in...