I cannot speak for people in other countries, but I am vehemently against stablecoins backed by other sovereign currencies being adopted in India. I can only speak to that.

They are the worst kind of shitcoins, ever. Why?

1. The sovereignty of a country is determined by how sovereign the currency the populace uses is.

Letting an entity unaccountable to the citizenry determine the monetary policy and interest rates of the currency India uses is net bad.

They set the cost of credit. Banks cannot be kept accountable by the Central Bank, because they have a less degree of control over benchmark rates, reserve requirements, etc.

Supply and issuance is not controlled by any entity in the country. It can run wild. Inflation can be exported, and made worse.

Super bad over the long run.

2. Stablecoins are created with smart contracts.

Who are the owners of these contracts? They have veto over which fork you use.

What kind of ownership privileges have they granted themselves? They can freeze your address or deny your address access to the contract.

Do we expect people to understand the respective platform's smart contract languages to be able to verify this?

If yes, can they easily run their own nodes individually or collectively and verify the reliability of the contracts trustlessly, and also broadcast tx's directly from their nodes?

In the case of Ethereum, yes.

Other networks, no.

In the case of Ethereum's rollups, yes to validation, no to tx broadcasting, which brings me to the next problem.

3. How will stablecoins scale?

There will be people who use them on different networks. And in order to use them, they need to have the coin of those networks in their wallets, each with a variable or unpredictable monetary policy, which can lose value, adding an additional risk on top of accounting headaches.

If a merchant accepts stablecoins on Ethereum and I have it on Tron, I can't pay him.

To do so, we'll have to use a trusted bridge, and the merchant needs to obtain tron's trx to move the stablecoins he's received from me.

See what's going on with Multichain.

Even if it's done on one network's rollups, there are chances we use different rollups.

Rollups are not interoperable. Can't send value from one rollup to another. Again, need to use trusted bridges.

Moreover, there's no clear pathway towards decentralising how blocks are produced on Ethereum's rollups so far.

So using stablecoins backed by other sovereign currencies in India:

To transfer value internationally and immediately convert it to Rupees now, yes. They are useful.

But to actually use it as money, absolutely not. Big no from me. They solve problems now and create worse problems in the future for India.