DPI (Digital Public Infrastructure):
Foundational systems:-
Digital Identity (Aadhaar)
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Digital Payments (UPI)
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Digital Data Exchange (DEPA, DigiLocker, ONDC, Account Aggregator, etc.)
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India Stack:
The most advanced DPI model built at national scale, fully open-source, promoted globally. -
India is exporting this model via:
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G20 Digital Public Infrastructure declaration (2023)
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50-in-5 UN initiative
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India-Global South digital partnerships
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Dedollarization...
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Dedollarization is reducing global dependence on the US dollar as the reserve currency and global payment rail.
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Historically:
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USD dominated because it controlled global settlement (SWIFT, CHIPS, Fedwire).
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Even countries trading in local currencies still often settled in USD eventually.
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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
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India is already piloting UPI cross-border linkages with:
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UAE
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Singapore
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Bhutan
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Nepal
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France (limited)
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Indonesia
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This allows:
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Direct INR-foreign currency transactions.
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Bypassing USD in some retail and remittance flows.
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India’s Account Aggregator & ONDC models can be exported as trusted, secure, non-Western infrastructure for Global South countries.
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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):
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Build a DPI layer globally:
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Cross-border digital IDs
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Seamless payments
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Data sovereignty
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Local currency trade
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Gradually reduce exposure to USD-based systems.
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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
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The US recognizes that:
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Its payment systems are being quietly circumvented.
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DPI + digital currency models may eat into dollar dominance.
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But the US still dominates global finance and technology stacks.
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That’s why the US indirectly supports India’s DPI export — it would rather India build these systems than China.
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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 dedollarization
DPI is not just technology — it's the foundation of financial sovereignty.
