Money 20/20 Conference Discusses Blockchain Payment Systems as New Financial Standard
Bitcoin and blockchain technology has never been a quiet innovation. From the very onset of Bitcoin with the creation of the first whitepaper by Satoshi Nakamoto, the currency was poised by its creators and advocates to be a potential alternative to the current financial system. To these libertarian financial experts, Blockchain is a way that the average citizen can step outside of what they interpret to be an unfair economic system.
But there are still naysayers to this optimistic prediction on the future of cryptocurrency. For those who support the traditional fiat financial system, blockchain technology will simply be a tool for the current system—rather than the beginning of its end. The debate rages on. The incredible nature of decentralization, immutability, and the efficiency of the blockchain have inspired millions to jump into the crypto space, eager to take advantage of what they believe to be the future of financial systems all over the world.
During the huge Money 20/20 conference today, Las Vegas blockchain professionals outlined their contrasting beliefs in the future of blockchain tech, and how the technology might work to change the way that payments are recorded and conducted in the increasingly globalized economy of the 21st century.
According to some experts at the conference, blockchain could be the final nail in the coffin of a financial system with decreasing public trust and belief.
Schwartz Bullish on Blockchain
The first major comparison coming out of the conference was the belief of David Schwartz, the CTO of Ripple. He outlined in a small speech that blockchain is to the traditional financial system what email is to traditional post mail. He believes that, because of the incredible efficiency of email in comparison to the post, people eventually adopted the former over the latter completely.
For blockchain, the efficiency comes from the ability of blockchain to efficiently process transactions while minimizing costs and third-party interference.
According to Schwartz, smaller payments with high frequency simply are not feasible in the current financial system. But under a blockchain ecosystem, it is entirely possible to have a high amount of transactions with high liquidity and efficiency.
The slow and very expensive nature of conducting transactions via traditional fiat banks and financial systems precluded several types of payments integral to an efficient economic system.
Responding to the remarks of Schwartz, Esther Pigg, the Senior Vice President of FIS, outlined her belief that blockchain can solve very few problems that cannot be solved with “existing payment platforms.” Instead, she argued in these statements that many of the statistics backing the efficiency and cost reduction of blockchain are “overstated.” Additionally, Pigg stated that blockchain technology is not nearly as secure and safe as it is purported to be by proponents of the technology.
Blockchain tech is not efficient at predicting or detecting criminal behavior, whereas systems in the current financial sector or generally far more secure.
While Pigg does believe that blockchain has significant potential, the future of the technology might not be quite as bright as some might make it out to be.