“What happens when the cost of payments reaches zero, the speed of payments is instant, and everyone globally can make and take a payment, what happens then?
I just had an interesting chat with someone and realised two things: one is that we’re talking about moving away from batch to real-time, and that’s where the shared, distributed ledger system fits; and moving away from banking to Fintech platforms, and that’s where the industry will integrate over time.
On the first point, we have a historical banking system built upon a mainframe ledger at the back end, to support face-to-face operations on the front-end. The re-architecting of that system demands we destroy the back end, as it was built on the basis of batch, overnight updates. How do we become real-time at the back end? That’s the key question.”
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