Firms involved in the existing payments and value
Managing disruption
exchange processes used by the finance sector should
There is more than enough opportunity for all, but
be wary. Peer-to-peer approaches to exchanging value
disruption in the financial sector is something that needs to are proving to be more efficient and effective than the be managed carefully. This is largely a social change and historical centralised solutions, and we expect these to any shift will have winners and losers. However, by
be replaced rapidly. However, disruption of the
considering this a social change we can actively navigate established centralised solutions does not necessarily the various possible futures enabled by the technology, imply disruption of the responsible firms. Development working to shape the future we want rather than simply and maintenance of the technologies these peer-to-being victims to one we think we’re forced to accept.
peer solutions rest on must be supported. This support to invest in cryptocurrencies and access to the latest may come from an open-source model, such as the
information and research click here:
one used to develop and maintain Linux and, more
https://bit.ly/3r05JMs
recently, Bitcoin. It could come from a consortium-
based approach supported by a standards body, or it
may even be provided by a firm willing to invest the
time and effort to ensure the peer-to-peer solution is correct and compliant with the relevant national and
international regulations, of which Ripple Labs may be a good example. Indeed, the finance sector is heavily
regulated and the need to support this regulation (with its accompanying burdens of proof and penalties) will
be a significant driver in determining how these peer-
to-peer solutions will be integrated into the finance
sector. This may favour a conventional firm with
significant experience in the regulatory environment.
Other stakeholders should be less concerned by the
disruption ahead. Regulators have shown time and again that new ideas can be integrated successfully into existing regulatory frameworks. We see no reason why
cryptocurrencies and peer-to-peer technologies will be any different. Consumers also have no need to worry, as it is their preferences that will shape the future.
The Future of Exchanging Value Cryptocurrencies and the trust economy 61
1.
Peter Williams, Ian Harper and Peter Evans-Greenwood (2012), The future of exchanging value: Uncovering new ways of spending, Deloitte Australia.
2.
Myki scam costs Victoria $4.2 million (25 August, 2015), The Age.
3.
Greg Thomas (6 November, 2012), Thieves Launder Money by Crowdfunding Themselves, Motherboard.
4.
Jon Matonis (5 July 2013), The Politics of Bitcoin Mixing Services, Forbes.
5.
Trends in Retail Payments, Payments System Board Annual Report (2014), Reserve Bank of Australia.
6.
Crystal Ossolinski, Tai Lam and David Emery (June 2014), Research Discussion Paper, The Changing Way We Pay: Trends in Consumer Payments, The Reserve Bank of Australia.
7.
Electronic transactions include debit and credit cards, BPAY, transactions via Internet or phone banking, PayPal and direct debit.
8.
Crystal Ossolinski, Tai Lam and David Emery (June 2014), Research Discussion Paper, The Changing Way We Pay: Trends in Consumer Payments, Reserve Bank of Australia.
9.
Ibid.
10. Trends in Retail Payments, Payments System Board Annual Report (2014), Reserve Bank of Australia.
11. Reserve Bank of Australia Payments Statistics, C6: Cheques and Direct Entry Payments (www.rba.gov.au/ payments-system/resources/statistics/index.html).
12. Australian Bureau of Statistics, 3105.65.100 Australian Historical Population Statistics, 2014.
13. Reserve Bank of Australia Payments Statistics, C6: Cheques and Direct Entry Payments (www.rba.gov.au/ payments-system/resources/statistics/index.html).
14. Australian Bureau of Statistics, 6401.0 Consumer Price Index, Australia.
15. Stripe (www.stripe.com) enables private individuals and businesses to accept payments online through an easy-to-use, consumer-friendly interface without the need to set up a merchant account, meet minimum transaction volumes or pay monthly account maintenance fees.
16. Square (www.squareup.com) enables individuals and merchants to accept debit and credit card payments via their iOS or Android smartphone or tablet computer.
17. Virginia Harrison (2 June 2015), This could be the first country to go cashless, CNN Money.
18. Campbell Phillips (20 May 2013), Loyalty Programs in Australia: Coles Flybuys Takes First Place, Power Retail.
19. Ben Wofford (20 July 2015), “Up in the Air: Meet the Man Who Flies Around the World for Free”, Rolling Stone.
20. Brixton Pound (www.brixtonpound.org).
21. Shane Hickey (7 June 2015), “The innovators: the Bristol pound is giving sterling a run for its money”, The Guardian.
22. Gernot Jochum-Müller (19 September 2012), Langenegg is Euro-free, Allmenda.