India | UPI | Payment System | Global Revolution | 15th October 2022 | Virtual Wire
The relevance of digital payment systems worldwide has been brought to light after the post-COVID times and the sanctions placed on Russia due to its conflict with Ukraine.
As a consequence of it, the global economy is currently in recession. The Russian-Ukrainian crisis has disrupted the global supply chain for commodities like crude oil, wheat, steel, and aluminium. The United States uses its soft power through the dollar and SWIFT payment system to inflict sanctions on other nations. So, is it possible to challenge the US hegemony? The answer to it would be yes. Transactions via blockchain technology like bitcoin, dogecoin, ripples, and other digital currencies have eliminated the substandard SWIFT system to facilitate trade across the nation.
India's National Payment Corporation in the year 2016 developed the UPI, which is a (Unique Payment Interface) mechanism for cashless transactions. Last year, 4.2 billion transactions were conducted via UPI with a net worth of 8.27 lakh crore rupees, which is still increasing. Such huge sums of payment settlements replaced the Master Card, Visa, and internet banking systems. After enormous success in the Indian market, it grabbed the attention of the topmost financial institutions, namely the IMF and the World Bank. It has overpowered all existing modes of payment and has the potential to dominate the global financial order.
All other countries have failed to develop a payment system that is compatible with UPI, establishing India as a global model. Therefore, to boost their economies, countries like Singapore, Bhutan, and Nepal are implementing UPI standards for their QR codes. UPI intends to expand throughout the Middle East region by integrating blockchain technology. Experts have predicted that the linkage of UPI with encrypted blockchain technology will counter US hegemony in the near future. The expansion of UPI will boost trade between India and its strategic partners, Russia and Central Asia. UPI will further help India to achieve its 5 trillion dollars economic goal while contributing to the GDP growth of the country.