As a company positioned at the forefront of innovation and creativity in fintech, Trust Payments is delighted to have contributed to The Payments Association’s latest green paper, “A new era for money”, focused on the promising potential of Central Bank Digital Currencies (CBDCs).
A CBDC is a digital token that represents a country’s currency, issued by a nation’s central bank and fully backed by the issuing government. This green paper discusses the possibilities CBDCs would open up, not only in terms of the speed of digital transactions, but also the opportunity for privacy in payments, as well as convenience and accessibility.
Operationally, the payments landscape as it stands is extremely complex, with transactions being required to pass through multiple parties before clearing. At Trust Payments, we have aimed to eliminate the need for third parties through our industry-leading Converged Commerce™ setup. As the Payments Association outlines, the adoption of CBDCs would support our vision of simpler payments, free from legacy systems and updated for the high-speed demands of modern finance.
For retailers, CBDCs would mean fewer costly, frustrating chargebacks, near instant settlements, and a reduction in transaction costs. For consumers, CBDCs would bring better security, allow for interaction with a central bank directly, and eliminate any risk of a commercial bank collapsing.