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Digital South Trust’s 9-State Research on Crypto Payments Featured in The Economic Times

Digital South Trust conducted field research across nine Indian States examining how cryptocurrencies and stablecoins can be converted into real-world purchasing power through overseas platforms, vouchers, gift cards and payment intermediaries.

The research examined multiple use cases, including hotel and flight bookings, groceries, shopping, mobile recharges, food delivery, electricity bill payments, online purchases and gold purchases.

A key finding was the emergence of cross-border payment pathways in which an Indian user may transfer Bitcoin, USDT or other Virtual Digital Assets (VDAs) to an overseas platform, while the resulting voucher, booking or purchasing power is ultimately used within India.

Indian User → Crypto/USDT → Overseas Platform → Voucher/Payment Intermediary → Goods or Services in India

These research findings and Digital South Trust’s observations were subsequently covered by The Economic Times, which reported on overseas platforms enabling Indian users to convert crypto into gift cards and vouchers for domestic purchases. The report also quoted Digital South Trust Founder Sudhakar Lakshmanaraja on the cross-border nature of these payment pathways and the need for further examination from a regulatory-oversight perspective.

Read the Economic Times report :https://economictimes.indiatimes.com/news/india/indians-are-using-crypto-to-buy-groceries-fuel-and-gold-through-overseas-gift-card-platforms/articleshow/133895144.cms?from=mdr

Digital South Trust has also shared its research findings with the Government of India for further examination and necessary consideration. The cross-border nature of these transactions requires closer examination because parts of the payment chain may involve offshore entities, self-custody wallets, decentralised networks and foreign conversion mechanisms, potentially creating challenges relating to AML/CFT, FEMA, taxation, payment oversight, consumer protection and law-enforcement visibility.

As crypto increasingly moves beyond trading into everyday commerce, understanding the complete transaction chain—from the wallet and blockchain to the overseas platform, intermediary and final Indian merchant—is becoming increasingly important for India's evolving VDA regulatory framework.

Disclaimer: The research does not suggest that every crypto-funded transaction or platform is unlawful. The regulatory treatment depends on the structure of the transaction, entities involved and applicable laws.