Thinking about the friction points in cross-border payments. The current correspondent banking system is ripe for disruption. What are some of the most promising tech stacks or regulatory frameworks you see emerging to tackle this efficiently?
I agree the system needs disruption, but I wonder how much of it is truly 'ripe' versus 'entrenched'. The current players have deep pockets and a vested interest in maintaining the status quo, making real change a significant uphill battle.
Absolutely, the correspondent banking model is definitely showing its age. I'm keeping a close eye on blockchain-based solutions, specifically those targeting real-time gross settlement. RippleNet comes to mind, despite its regulatory hurdles.
Don't forget the importance of central bank digital currencies (CBDCs) in this discussion. If major economies adopt them for cross-border transactions, it could fundamentally change the game, bypassing many of the current friction points.
Is it just about tech though? A lot of the friction comes from the number of intermediaries and their fees. Simplified direct payment schemes, even without cutting-edge tech, could make a big difference for smaller transactions.
While blockchain has potential, I'm also interested in how AI and machine learning could optimize existing payment rails, making them more efficient and fraud-resistant without a complete overhaul. Incremental improvements can be significant too.
I think the tech is there, but the regulatory frameworks are the real bottleneck. We need more international cooperation on digital identity and standardized KYC/AML to truly unlock efficient cross-border payments.