India plans to launch ARC, a Polygon-backed INR stablecoin, in Q1 2026. It complements RBI’s CBDC with a two-tier framework, restricting minting to corporates.
India plans to launch ARC, a stable digital asset. It will be pegged 1:1 to the rupee. It is supposed to be launched within the first quarter of 2026. Polygon and Anq have developed ARC that will be deployed in a bi-tiered structure. This system is complementary to the CBDC of the Reserve Bank of India (RBI).
Only the corporate accounts will be allowed to mint ARC. Whitelisted addresses will be limited to token swaps. This is going to be through Uniswap v4 hooks. In essence, ARC is prepared to stop the outflow of liquidity. It will prevent this from dollar-pegged stablecoins.
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This policy retains liquidity and innovativeness in the domestic economy of India. At the same time, it encourages the demand of public debt instruments. The suggested digital token will be in addition to the Central Bank Digital Currency (CBDC) by the Reserve Bank of India (RBI). It will become a controlled interaction layer created by the business society.
The Central Bank Digital Currency of the RBI would equally continue to be the final settlement layer in this two-level structure. This protects financial sovereignty and safety. Meanwhile, it is the platform of the private sector. This creates accountable innovation in payment solutions. It also allows a programmable remittance system and transactions. It is all under a regulatory-compliant environment.
Sources have said that the ARC will be in line with rupee partial convertibility. INR is a completely convertible currency in terms of current account transactions. Such are trade, business payment and remittances. Nevertheless, it still has a limitation of capital account operations. This secures the stability of the economy.
This will be done through the stable digital token, which will enable one to pay using business transactions. This does not involve complete convertibility. Notably, business accounts will only be granted the right to mint ARC tokens.
Some of the critics doubt its decentralized character, whereas adherents suppose that ARC has an opportunity to speed up financial innovation in India. It would be in addition to the Central Bank Digital Currency (CBDC) of the Reserve Bank of India (RBI). It achieves this through providing a programmable layer developed by the private sector.
Moreover, it is relevant to place the ARC stablecoin and the Polygon price in context. ARC token will operate as a fully regulated and non-speculative digital currency. It is pegged to the worth of the Indian rupee. The government securities or treasury bills will support each token. Such a design would also assist in enriching the government bond market in India. It also relates the demand for ARC to that of government debt instruments.
Polygon’s role is crucial. Polygon (previously MATIC) as an underlying technology partner will offer the blockchain infrastructure of the ARC stablecoin. Polygon was upgraded significantly in September 2024. It changed its name to MATIC to POL because it had to enhance its scalability.
The recent price movement of Polygon is volatile. Polygon (MATIC) is traded at 0.1473 on November 20, 2025, according to CoinMarketCap. Nevertheless, Polygon has had mixed predictions regarding its prices in 2025. This is an indication of volatility and unpredictability in the market.
The potential of ARC is great. Although the ARC stablecoin has a high potential to increase the presence of Polygon in India, it does not necessarily affect the price of Polygon. Nevertheless, analysts think a higher Web3 adoption and collaboration with other partners, such as in the case of Anq, will have a positive impact on the value of Polygon in the long run.
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