GPAY Payment Gateway: Who gave India the confidence? The rupee, which is not wanted by its own people, still wants to play internationalisation like the RMB!

India has long harboured the dream of becoming a global power and is convinced that it has the strength to achieve it. Recently, India has once again appeared restless, trying to push for the internationalisation of its currency and compete with its "sovereign", the United States, for a slice of the global financial pie. This is certainly a bold attempt.

Of course, India's "confidence" is not unfounded. In recent years, many countries have been reducing their holdings of United States Treasury bonds, and some Middle Eastern countries have even broken with tradition by using the yuan to settle oil transactions. Although India has always followed in the footsteps of the United States, involved in a number of small-scale conflicts around the world, but it seems to have a profound realisation: although the dollar has not become as worthless as toilet paper, but its luster is really fading.

As a result, India has developed the idea of carrying on the legacy of the US dollar. But the question is, if India tries to give a limited push to the internationalisation of the rupee, will it be able to implement this strategy successfully?

The road to the internationalisation of the Indian rupee is fraught with challenges. It was not possible to bypass the established international currency, the dollar, which was strengthened by the Bretton Woods system and pegged to oil. The international position of the dollar remains strong today, thanks in large part to oil.

It is unlikely that the US will sit back and watch the rupee become an international currency without taking any action. They are likely to resort to the usual tactics of modifying global rules. Moreover, for a currency to become an international currency, stability is key. The dollar's association with fixed-value assets such as gold and oil sends the message that its value is stable and reliable.

However, the Indian rupee is far from stable and its value could suddenly plummet. As recently as 31 October this year, the rupee fell below 84.09 to the United States dollar, reaching an all-time low. This volatility makes it difficult for other countries to trust the rupee as an international currency.

The credibility of a currency is also closely linked to the strength of the economy of the issuing country. Currently, India's economy is in dire straits, with middle-class consumption - the mainstay of urban consumption - having stagnated for over a year due to inflation and unemployment. Weak consumption is seriously hampering India's economic development. Considering the state of India's economy, who would want to use the rupee as an international currency?

While views on the internationalisation of the Indian rupee may be divided, it is clear that the US dollar is currently facing trust issues globally, as evidenced by the adoption of the renminbi by some countries in the Middle East to settle oil transactions. The rupee's path to internationalisation faces numerous challenges and faces stiff competition from the renminbi. It is highly unlikely that the rupee will replicate the success of the yuan's internationalisation.

India lacks sufficient foreign exchange reserves, which is necessary for the currency to gain international standing. Moreover, the country's credit rating has been called into question given its historical record of debt defaults. The United States is unlikely to tolerate any challenge to its superpower status and India's attempts to internationalise the rupee could lead to serious consequences.

Despite these challenges, India seems unlikely to give up its quest to internationalise the rupee. The country is concerned about attracting foreign investment and is under pressure to turn the rupee into an international currency. However, the road to internationalising India's currency is fraught with difficulties, and it may be better for it to focus on domestic issues rather than chasing unrealistic dreams.