Traditionally, the functions of financial market infrastructure (which includes payment systems) have been centrally administered and operated by a single entity. There is a growing movement within the wholesale financial market towards decentralisation in order to reduce reliance on centralised intermediaries and “unlock billions in capital and liquidity”. Decentralisation is at the core of our design principles at Fnality. Both the technology underpinning the Fnality Payment System (‘FnPS’) and our organisational design are based on the concept of decentralisation. There will be no ‘single point of failure’ should a server go down or ‘single point of attack’ from malicious actors...
Earlier this year, the Financial Stability Board authored a paper on stablecoins: 'Addressing the regulatory, supervisory and oversight challenges raised by 'global stablecoin' arrangements'.
Solving for on-chain payment in wholesale banking
'Stablecoins' are typically viewed as a proxy for money, so we do need to be careful about their use and the potential risks that they create. To this end, the FSB has authored a paper on stablecoins: "Addressing the regulatory, supervisory and oversight challenges raised by “global stablecoin” arrangements”.
Do we need to change thinking on value-date i.e. the date on which a transaction actually takes place? We’d love to hear your views.