CLUSTERS

Blockchain and cryptocurrency

Moving towards a faster, cheaper and more secure transactions platform.

The greatest potential for cryptocurrencies is to radically streamline money’s function as a transfer of value – via decentralized currencies and mobile solutions. As such, the current value transfer system built on automated clearing houses and intermediary banks could be threatened in time. The future is set to be faster, cheaper and more transparent.

Key trends

Cryptographic protocols

Cryptographic protocols

online fixed income

Online fixed income markets

new market protocol

New market protocol / standard

p2p transfer

P2P transfers

mobile money

Mobile money

Implications

Market share loss

The role of traditional intermediaries as a trusted party may diminish.

Lower margins

Alternative payment networks may drive down margins of incumbents.

Vast applications

Applications of these technologies can expand beyond money transfer to modernize other financial infrastructures.

New risks

Incumbents may face new sets of risks (e.g. reputation, security)

Two key questions

1

How will decentralized payment schemes change the role of financial institutions?

2

Can the applications of these technologies by expanded beyond money transfer to modernize other financial infrastructures? If so, which ones?