The global rise of Bitcoin has introduced the world to cryptocurrencies, distributed ledger technology, smart contracts (SC) and blockchain technology.
SC technology has the potential to enhance efficiency, trust, transparency, reach and innovation in the financial markets. And while there are many other use cases – including in securities and capital markets – payments is one of the areas where SC may prove most valuable. There are clear reasons why SC’s can make a difference in the digital payments space compared to existing technology. They enable democratic, distributed, evenly-balanced control to be exercised in situations where it’s currently not possible or easy, such as international payments.
SC’s also go beyond the capabilities of existing technology by providing transparency where it has previously been difficult to achieve, such as in antimoney laundering (AML).
