Retailers will need support to adopt Central Bank Digital Currencies (CDBC) in the long term, Alison Conway, Head of Strategic Development at Trust Payments has advised in a panel session held as part of the inaugural Digital Currencies 360, co-located with Pay360 to discuss the “A New Era For Money” green paper, which Trust Payments helped to compile.
Conway was contributing to a panel looking at the key requirements for a central bank backed digital currency within the UK. She outlined the following as being essential to helping stimulate wider adoption of CDBCs:
An agreed upon set of rules to ensure interoperability
A shared network to drive public adoption
Tangible benefits for both merchants and consumers
Solutions to existing problems with the current financial framework
Speaking on a panel alongside other industry experts, the participants reiterated the green paper commitments to helping steer CDBC cross-border adoption and compatibility and said these would be key to the success of rolling out these emerging payments. This includes pledges to keep merchants up to speed with the changing methods of payments and digital stock taking.
“In order to ensure widespread adoption, a concerted effort is required to prevent retailers from further enduring costly, lengthy revamps to existing systems. We partner with several retail merchants and can see first-hand the positive impact that embracing channel agnostic digital solutions can have on efficiency and profitability. Our Converged Commerce™ approach has seen exponential growth among retailers, which leaves us well positioned to appreciate and solve their needs and issues when it comes to CBDCs.”
Alison Conway Head of Strategic Development, Trust Payments
She added that consumers would need to be encouraged to switch to CDBCs by media coverage that explains the benefits of CBDCs in an accessible manner. These should include core themes such as:
Fractional usage possibilities that would enable payments to be sent based on fractional usage, such as per unit of energy.
Payments triggered by milestones or conditional execution, such as once a parcel has been delivered or a service fulfilled.
Funds transferred with behavioural spending stipulations, as in if a concerned parent may not want their child to purchase alcohol or tobacco products.
The prospect of an app store which would allow for programmable money in various creative ways.
The era of digital tokens and currencies is undoubtedly upon us, and as private enterprise continues to expand and grow within this fast paced and unpredictable market, the need to a regulated, safe and protected alternative will only grow. By continuing to offer our help and support to the Payments Association, Trust Payments is proud to be part of the future of finance.
Payments Association Director General Tony Craddock also urged involvement not just from those in fintech, but all over the financial landscape – big banks, small banks, systems developers, telecom companies, and crucially the consumer. “To develop a digital currency which will satisfy the demands of an evolving market, it is essential that all those with a vested interest come together,” he concluded.
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