Can India’s UPI Payment Model be Replicated in US and Europe? Tech Diplomacy Could Make it Happen
News 18Bitcoin’s price tumbled last month following the news that regulators in China would ban domestic banks from dealing in cryptocurrencies. In response, China, India along with several countries’ central banks have floated ideas for a Central Bank Digital Currency, a digital representation of a nation’s currency backed by blockchain technology. Indeed, seeing the success of Google Pay in India using the UPI architecture, the company wrote to the United States Federal Reserve supporting a similar interbank real-time payments architecture called FedNow in the country. This was done in India to bring more competitiveness in India’s bank payments landscape where customers could pick bank applications with better user experience to access funds from their account. For example, though Jack Ma’s Ant Financial’s fortunes have taken a huge setback following Chinese regulators’ crackdown on his internet conglomerate, the idea of using QR codes for payments has been co-opted by the UPI in India.