Can blockchain rewire India’s cross-border payment infrastructure?
A UPI payment looks instant. When one fails, getting the money back can take days.
The delay is not a flaw in the app. As Ashish Singhal, co-founder and CEO of CoinSwitch, points out, it sits in the back office, where banks must reconcile separate ledgers before funds come back. The same layered machinery lies beneath international payments, where correspondent banks, messaging networks and multiple rounds of reconciliation must all agree before money finally moves.
Blockchain’s pitch is to replace that patchwork with a shared, synchronised ledger used by participating institutions. Distributed ledger technology (DLT), its backers argue, could simplify reconciliation, shorten settlement delays and remove some intermediaries. As the Reserve Bank of India (RBI) explores international uses of its central bank digital currency (CBDC), the digital rupee could one day sit inside such an interoperable architecture, letting countries settle with each other more directly. But can the technology change...
Copyright of this story solely belongs to www.expresscomputer.in. To see the full text click HERE
