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A possible future for banking, payment and innovation that propels them

I have been spending an inordinate amount of time reading about the payment and the banking industry. You might have noticed that in what I have been sharing.

When Satoshi launched Bitcoin after the financial crisis, he labelled it as a fix for the inefficient system that existed then and persists till today. What I am not sure Satoshi might have foreseen is that the technology he helped assemble would be used for something far more than just Bitcoin alone.

Importantly, Stablecoins and CBDC have been birthed as a result of the technology. So what’s going to likely happen from here?

1. With the news of PayPal plans to launch its stablecoin, it won’t be wild to say everyone that can launch a stablecoin will launch one in the future. Facebook opened everyone’s eyes and the existing stablecoins have proven that operating within a given regulatory framework, Stablecoins are the future.

2. Payment infrastructure over the next decade will experience a massive revamp. More than 80% of the world’s central banks are doing great one thing other about CBDC. Stablecoins are not only garnering attention, but the possible number of uses cases for them are also growing at an alarming rate. Those two systems are infrastructure redefining mechanisms of coordinating money.

3. Existing systems won’t go out of extinction overnight. What we will experience is that startups will build on these rails before legacy corporations. Also, adoption will first of all be high in countries that are currently suffering from financial alienation, high inflation and an unstable economy.

4. Regulation will struggle to catch up at first and that may be costly. But that’s the price of innovation. Like everything else though, eventually, regulation will be close par.

5. Africa in particular will be the most important ground for experimentation in this new era.

It’s an interesting time to be alive and witness this. I have used Stablecoins to facilitate a lot of my cross-border payments in the last couple of months. It’s inevitable after all.

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