EP083 - Crypto - GENIUS Act vs Payment Banks: Lessons in Safety, Scale & Regulation
Description
In this episode of India FinTech Diaries, we draw fascinating parallels between India’s Payment Banks experiment and the US’s GENIUS Act, designed to regulate stablecoin issuers.
Both initiatives aim to create safe, inclusive financial systems—but as we explore, they also share similar scaling challenges that can make or break their success.
Key Highlights:
🏦 Payment Banks 101: Why they were launched, their business model, and why many never scaled beyond pilots.
💸 GENIUS Act Deep Dive: Full-reserve requirements, monthly attestations, consumer protection norms, and how it hopes to make stablecoins safe.
🔗 Surprising Parallels: Both aim to build trust first, exclude risky behaviors, and onboard underserved users—but struggle with monetization and scale.
⚖️ Safety vs Viability: The big lesson—designing for safety is not enough; the model must also be commercially sustainable to scale.
🌐 Why It Matters: Stablecoin regulation will shape cross-border rails, remittances, and even CBDC interoperability. Getting it wrong could cede ground to unregulated players.
Tune in to understand how Payment Banks mirror Stablecoins in the GENIUS ACT
United States
