Banking in The 2020s: The WAYS Forward
Internet-Native Payment Networks And The Future Of Banking
The world’s central banks and financial institutions are at a
crossroads. They must choose to be proactive and embrace innovation in
financial technology, or risk losing influence and customers if they are
slow to implement their own strategies.
Central bankers’ measured approach and trepidation is understandable.
After all, these institutions primarily exist to set monetary policy,
regulate commercial banks and manage risk.
There is good news for central bankers and financial institutions
looking to seize the opportunity to lead. There are financial
technologies available to be incorporated into their strategy that can
enable them to keep pace with the evolving market.
In his latest thought-leadership piece, Simon Chantry, Co-Founder and
Chief Information Officer of Bitt, ultimately defines internet-native
payment networks and outlines opportunities and insights for financial
institutions to utilize and integrate with these digital systems.
According to Chantry, “internet-native payment networks or rails…
like DCash, SandDollar, and DCEP, settle transactions in a purely online
environment and constitute their own rails. In this sense, CBDCs and
crypto are all considered digital bearer instruments, which means each
transaction includes the settlement.”
Although most of the world’s central banks are exploring different
ways to issue their own digital currencies, the pace of these
explorations may not be fast enough for tech-savvy financial
institutions and their consumers. Chantry offers a recommendation to
commercial banks, “should a CBDC not be on your region’s roadmap, your
institution could pilot its own stablecoin.”
Bitt has led the digital evolution of the world of banking with the
2016 creation of mMoney, the synthetic digital Barbados dollar. More
recently, the 2021 launch of DCash—the world’s first CBDC in a currency
union—and a stablecoin digital currency solution for the National Bank
of Belize clearly demonstrates the global company’s expertise in the
Whatever path a central bank or financial institution decides to take to the digital future of banking, they should consider utilizing Bitt’s Digital Currency Management System (DCMS), currently deployed in six countries. Bitt’s DCMS can provide your institution with opportunities to lead in your market and in the development of innovative business models.