New Delhi, May 12 -- Zerodha co-founder Nikhil Kamath has raised concerns over the growing push for dollar-backed stablecoins in India, saying such instruments may not suit the country's long-term financial interests. Kamath instead suggested that India could explore a gold-linked stablecoin model that may help unlock value from the massive quantity of idle gold held by households across the country.

Praising UPI as a transformational success, in a LinkedIn post, Kamath also credited Indian regulators and the Modi government for taking a cautious approach toward dollar-backed digital assets despite increasing global adoption.

Kamath argued that while stablecoins pegged to the US dollar are gaining popularity globally for cross-border pa...