India achieved in 9 years what would have taken 50 without Digital Public Infrastructure
DPI isn't just for developing nations, we all need it!
India’s Digital Public Infrastructure (DPI) is a gift to the world and can promote productivity, inclusivity and sustainable growth. It has irrefutably bettered the lives of hundreds of millions of people and brought the nation forward by decades. The title above is not an exaggeration!
More on India’s DPI and UPI here:
India’s presentation to the G20 pitches the global adoption of DPI for sustainable growth and makes the case that what India did with DPI isn’t a one-off but can be replicated elsewhere.
India is correct.
The real question for the G20 shouldn’t be “Why adopt DPI?” these reasons are clear (see below) but “What is keeping other nations from following the same path?”
👉WHY ADOPT DPI?
DPI empowers and protects individuals with economic mobility and key digital rights such as control over their money and data.
DPI allows countries to leapfrog and accelerate development at scale, with a high multiplier on economic growth (India achieved in less than a decade financial inclusion levels that would have otherwise taken 5 decades thanks to DPI).
DPI is a means of spurring market innovation by reducing transaction costs, maintaining competition through interoperability, and attracting private capital.
DPI inclusively enables vulnerable groups (such as physically remote populations, women, marginalized communities, and SMEs) to access services, helping close inter-group disparities such as gender gaps.
DPI's reach and flexibility become a source of resilience in times of crisis (During the COVID-19 pandemic, countries worldwide were able to leverage digital vaccination certificates and direct digital cash transfers based on DPI).
DPI is fiscally light touch (using a mix of public & private financing); and
DPI offers nations a path to maintaining control over critical national infrastructure.
👊STRAIGHT TALK👊
I’ve been writing about India’s UPI for years now and can’t quite understand why, with such a smashing success, other nations haven’t jumped on the DPI bandwagon.
India's pushing DPI to the G20 is a great contribution, and will hopefully help spread the solution to others. India graciously making all of its DPI code open source will help.
One are that will require a rethink by G20 members is that DPI isn’t just for developing economies. It’s benefits are needed in advanced economies as well.
The West is increasingly concerned about the monopolistic tendencies of US big tech, and DPI is one of the few ways the government can ensure that citizens have a digital presence without being fleeced for their data and money by big tech.
Sadly, in the US and other nations, there is such distrust of government that any form of DPI is seen as a government overstep into the realm of private tech companies. Ironically, this belief continues to strengthen big tech’s massive grip on society and citizens’ lack of digital privacy.
However, there is always hope. The European Union’s, new digital ID system and central bank digital currency show the role of DPI in advanced economies.
While India’s DPI isn’t a cure-all, it is definitely an idea whose time has come.
I hope the G20 considers the benefits of DPI for citizens in developed nations as much as they do the developing ones.
What do you think about DPI?
Join our community by subscribing. You’ll be joining an exciting journey down the rabbit hole to our shared digital future—and you’ll be glad you did!
Subscribing is free, but I am increasingly honored by readers volunteering to opt for a paid subscription to recognize my high-quality writing. Thank you!
If you like what I write, and this newsletter has created value for you, and want to support my independent writing with a paid subscription, you have my heartfelt thanks!
Sponsor Cashless and reach a targeted audience of over 50,000 fintech and CBDC aficionados who would love to know more about what you do!
