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HSBC Official Predicts Blockchain to Challenge For Interbank Transfers

Experts now believe that interbank transfers might not be the same again with blockchain around. 


 

What The Future Holds For Traditional Interbank Transfers

A  senior official from Britain’s HSBC bank is on record stating that the DLT system and CBDC’s are a major challenge for already established instant gross settlement systems. The official, Craig Ramsey, made the remarks during a forum at Money20/20 held in Las Vegas. The forum was meant to discuss digital openings for cross-border interbank transfers.

He was responding to a question by moderator Robert Ruark from KMPG about HSBC’s plans for RGTS. According to Ramsey, the facility was reviewing the traditional mechanism such as SWIFT GPI. He pointed out the bank was viewing SWIFT as a major opportunity. He pointed out that back in May,  official data indicated that under SWIFT, 43% of transactions were completed within 30 minutes with a majority taking place within a day.

Ramsey added that they were also looking into big corporations that desire to clear transactions instantly or within half an hour. He stated that this is an indicator that existing technology can play a major role.

Interestingly, Ramsey said that in the event the current RTGS need to be replaced, currencies distributed by central banks will, in the end, offer a challenge to the current frame of reference. The HBSC official challenged players in the industry that it was time to explore new openings for the corporate world. However, Ramsey said that these opportunities should be within the confinements of the law.

He said that such opportunities should be developed in an ample environment without pressure. Ramsey pointed out at the moment, it is not clear which technological product will emerge victorious. He pointed out that focus should be placed on the transition aspect whereby the corporations can be free to roam in the ecosystem.

During the Money 20/20 forum, analysts drawn from different sectors failed to reach an agreement if DLT’s like blockchain will positively impact the payment system in a broader way. According to David Schwartz from Ripple, retails that integrate blockchain will set the pace in payment. He pointed out that the remaining entities will have to follow suit by adapting.

On the other hand, Dash boss Ryan Taylor said that CBDC’s are inevitable stating that it will entirely depend on an individual to decide the form of money he or she wants to use.


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