DPI (Digital Public Infrastructure):
Foundational systems:India Stack :
The most advanced DPI model built at national scale, fully open-source, promoted globally.India is exporting this model via:
Dedollarization...
Dedollarization is reducing global dependence on the US dollar as the reserve currency and global payment rail.
Historically:
DPI + India Stack + UPI-like cross-border models can challenge this.
The emerging model: "Digital Dedollarization"
| Old Model | New Model |
|---|---|
| SWIFT, USD, Fedwire |
| DPI-based payment rails |
| Dollar as intermediary | Direct currency swaps |
|
Western payment processors (Visa, MasterCard) | Sovereign payment systems (UPI, BRICS Pay, mBridge, etc.) |
|
US-centric financial governance | Multi-polar payment standards |
India's Role in Digital Dedollarization
India is already piloting UPI cross-border linkages with:
This allows:
India’s Account Aggregator & ONDC models can be exported as trusted, secure, non-Western infrastructure for Global South countries.
India can offer an alternative financial infrastructure that doesn’t require dollar settlement, Visa/MasterCard rails, or Western sanctions control.
The long-term vision (Global South thinking):
Build a DPI layer globally:
Gradually reduce exposure to USD-based systems.
Use regional trade agreements + BRICS expansion to scale adoption.
China, India, and the De-dollarization Competition
| China | India |
|---|---|
| Building Digital Yuan (e-CNY, CBDC) | Piloting Digital Rupee |
| Pushing Belt & Road Digital Currency zones | Pushing open DPI via 50-in-5 |
| Heavily state-controlled model | Public-private, open-standard, consent-based DPI |
| Closed tech stack (Huawei, ZTE) | Open-source India Stack export model |
👉 Many Global South nations are more comfortable with India's approach — cheaper, more open, less politically risky.
US perspective
The US recognizes that:
That’s why the US indirectly supports India’s DPI export — it would rather India build these systems than China.
But the long-term risk for the US is that once DPI layers take off, many dollar flows might simply disappear from small to medium trade transactions.
The Big Picture
✅ DPI (like India Stack) → enables
✅ Trusted sovereign digital payments → enables
✅ Bilateral & regional trade in local currencies → weakens USD as global intermediary → slow dedollarizationDPI is not just technology — it's the foundation of financial sovereignty.
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