Their exchange keeps a loose peg to stablecoin

A leading cryptocurrency exchange in India, Zebpay, has introduced crypto-to-crypto trading on its platform. The launch closely follows the Reserve Bank of India banning banks from servicing crypto exchanges. Meanwhile, Zebpay celebrated its 3 millionth app download.

We already have the equivalent of swapnet, so  any domestic barrier is immediately replaced with an external peg taking one of the second shortest paths.  

This is the central bank inherent misunderstanding, they are facing high speed swap nets, the things that cannot queue and these always have the second shortest paths. CBs are fighting a red herring, coins. Coins are not scary, all ownership is liquid on swapnet.

It is not hard to keep the peg because a large segment of trader are taking the second shortest route.  They arrive deliberately planning portfolio about their domestic currency, via dollars, which peg to stablecoins.  On net we get a synthetic peg to the local currency, and the local currency a bit weaker.

Central banks, take opposite approach, jump in.