Nikhil Kamath, co-founder of Zerodha, has proposed the idea of a gold-backed stablecoin for India, cautioning against the long-term risks of dollar-backed stablecoins. Kamath expressed concerns that reliance on dollar-linked cryptocurrencies could undermine India's financial sovereignty by increasing dependence on U.S. monetary infrastructure. He praised India's UPI system as a model for independent financial development. Kamath suggested that a gold-backed stablecoin could leverage India's vast household gold reserves, potentially monetizing these assets and providing returns to holders without relying on the dollar. While not presenting a detailed proposal, Kamath emphasized the need for discussion on this alternative, highlighting the Modi government's resistance to external pressures to adopt dollar-backed stablecoins.