On 12th September, a video of the CATO Summit called Fintech Unbound 2018 emerged online wherein many experts from the fintech industry and regulatory bodies sat together to discuss issues related to the remittance sector. Here, Gerry Tsai, the Fintech Director at the Federal Reserve Bank of San Francisco and Ryan Zagone of Ripple gave their insights on regulations and advancements brought by blockchain in the remittance industry.
On the efforts made by several companies towards exploring blockchain frameworks and Distributed Ledger Technology to better the fintech industry, Tsai stated that he is enthusiastic about the innovation.
However, he also pointed out that a lot of these innovations in the fintech space, especially in the domestic sphere are not necessarily oriented with new infrastructures. Instead, they are focused on user experience and efficiency to make the existing payments’ realms more accessible. Therefore, he said that it is essential to recognize that there is a huge room for advancements within the existing financial systems.
Next, the moderator narrowed down the subject to discuss the position of the US regulatory authorities in the global regulatory scenario. Ripple’s Director of Regulatory Relations took his turn to speak more on the matter. He quoted a previously stated statement in an earlier panel discussion about ‘certainty being a prerequisite to adoption’.
He then talked about the dependency of fintech on blockchain and cryptocurrencies in the next generation. In his words:
“I do think what we’re seeing now is a recognition that blockchain and crypto will play a key role in the next generation of infrastructure for financial services. And countries now recognizing there’s potential to be a leader there so they can become a global capital finance. “
He also cited the examples of multiple countries that are ahead of the USA in the adoption as well as in terms of the work culture in the blockchain sector. He specifically named London as having more people that are working in fintech than in New York. The UK has also overtaken HongKong, Singapore and Australia combined in terms of blockchain worker population, stated Zagone.
“Their fintech growth has been astounding, and it is domestic growth but foreign companies are moving there because the environment is so much more workable. It’s not easier. There are still high bars and strict rules but it’s flexible and workable to allow innovation to happen.”
Secondly, he quoted China as an example wherein he stated that China’s VC investments in technology are to eclipse that of the US for the first time in history. According to the regulatory expert, China is focusing on building financial services, leading the country on the path of becoming a global capital of finance, surpassing the US.
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