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 fintech space.

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.