India: fastest growing fintech market, ahead of the US in financial innovation: US legislator

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WASHINGTON: Republican Senator Steve Daines said India is the “fastest growing” country Fintech market in the world and far ahead of the US in terms of financial innovation.
The Montana senator said the United States faces a challenge from China, which has launched a digital Yuan, which they hope will one day displace the dollar as the world’s dominant reserve currency.
“Even beyond the digital Yuan, it is no secret that China and many other countries are far ahead of us when it comes to financial innovation,” he said during a hearing before Congress of the Subcommittee on Economic Policy for Banking, Housing and Affairs. Urban Senate in the Central Bank Digital currency.
“India is among the fastest growing FinTech markets in the world. In fact, India processed nearly 10 billion more payments in real time than China in 2020, $ 25.5 billion, compared to $ 15.7 billion. million for China, “Daines said.
He said that compared to India and China, the United States processed only $ 1.2 billion of payments in real time.
Darrell Duffie, Adams Distinguished Professor of Management and Professor of Finance at the Stanford Graduate School of Business, agreed during testimony.
“At this stage, the United States has lagged even behind India and China when it comes to digital currency technology. And competition for commercial services at the international level is very important,” Duffie said.
“US banks have been giving ground to Chinese banks internationally. If the US wants to compete, it will have to invest in technology in this area, particularly with regard to new uses of digital accounting technology,” he added.
Christopher Giancarlo, former president of the US Commodity Futures Trading Commission He said the use of distributed ledger technology with token money can present a very different future than what is known today.
“Today, we think of a global network of banking institutions that have been very helpful to the United States in sanctions, power, and other areas, but also in cleaning up money laundering and policing that banking network. But in the future, we can see very different digital currency networks. There may be a Yuan network. There may be a dollar-based network, “he said.
How these networks interact with each other will be critically important and China’s work in looking at blockchain technology and helping to set standards for interoperability between these networks will be critically important.
“Whether or not we finally want a digital dollar is almost a second-order magnitude issue. The first issue is that we are leaders in technological development and standard setting,” said Giancarlo.

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