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# System prepended metadata

title: INR Coin

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# INR Coin

There is no popular cryptocurrency backed by the Indian Rupee (INR), i.e., an INR stablecoin.

USD stablecoins or "dollar coins" are the most popular cryptocurrencies after Bitcoin (BTC) and Ether (ETH). The dollarization of cryptocurrency markets (crypto) and decentralized finance (DeFi) is well known at this point.

![](https://i.imgur.com/7Gvsw5D.png)

Indian nationals are the largest group of cryptocurrency users.

![](https://i.imgur.com/mtmvigj.png)

The latent demand for an INR stablecoin or "INR Coin" is apparent and worth exploring to provide more diverse forms of stable purchasing power and collateral to crypto and DeFi.

This will grow the pie and allow Indians to demonstrate more real world applications built on public blockchain infrastructure like Ethereum, Polygon and their rollups.

A reference implementation of INRC in Solidity has been developed by the KaliCo LLC (Kali) team: https://gist.github.com/z0r0z/c8fbe524e8719b211e476414b02d26e0

The key technical features of INRC:

*Ethereum standards:*

* ERC20 (Fungibility)
* ERC173 (Ownership)
* EIP712/ERC2612 (Signed Approval)

*Stablecoin extensions:*

The `owner` admin of INRC can do the following:

* Mint new INRC
* Burn old INRC
* Turn transfers on/off.
* Lock tranfers for specific accounts.

Mint and burn can be automated through a smart contract if issuance and redemption is determined to be cryptonative *see below.

Transfer controls are installed in order to accomodate a legal approach (user agreement defines backing), as this centralization would require compliance with OFAC and other institutional regulations. However, these controls can be disregarded and removed if a cryptonative approach is determined to be better for adoption.

All that is left is to decide on a bootstrapping partner and implementation of issuance and redemption that will ensure INR backing.

# INRC - Option 1 - Institutional Backing

[] is the suggested partner to Kali to help structure an issuance, redemption and compliance program modeled on Circle USDC.

Reference terms: https://www.circle.com/en/legal/usdc-terms

# INRC - Option 2 - Cryptonative Backing

INRC issuance and redemption can be handled through a smart contract that has the mint and burn rights to INRC according to an updateable exchange rate. 

The exchange rate should be simple and popular, such as USD/INR. A USD rate, managed through Dai stablecoin as collateral, seems preferable to BTC or ETH to dampen volatility. Dai, as well, involves less trust and censorship risk than another stablecoin like USDC.

The exchange rate variable can be governed by a DAO or trusted set, similar to wBTC, or more distributed through an aggregated oracle feed (this can be immutable or similarly governed).


