On this week's episode of Yahoo Finance Future Focus, our host Brian McGleenon spoke to BCB Group Chief Product Officer Ashley Pope about the transformative impact blockchain settlement capabilities will have on established financial institutions.
Bob highlighted how blockchain technology facilitates near-instant settlement, pushing traditional market players to quickly adapt to evolving customer expectations. He stressed that the expectation of instant settlement, inherent in the field of cryptocurrencies, is gradually permeating traditional finance. This trend is fueled by evolving user needs and ultimately aims for a world where value moves at the speed of the Internet.
To bridge this gap, traditional financial institutions are exploring innovative solutions, such as the stablecoin settlement offered by Visa to merchants and JP Morgan initiatives like Onyx to enhance liquidity in private markets. Additionally, the UK government's plan to supervise fiat-backed stablecoins signals a broader trend toward the adoption of cryptocurrency-inspired settlement mechanisms.
Bob discussed a variety of settlement options, including stablecoins, native cryptocurrencies such as Bitcoin and Litecoin, and existing payment systems such as FPS in the UK and SEPA in Europe. He also pointed out how blockchain service providers also offer cross-border payment solutions, exemplified by Ripple's on-demand liquidity service.
