Blockchain technology and more innovative financial products have already begun to restructure the traditional global payment system.
Rohit Kulkarni, a Forbes employee and former financial analyst at Citigroup, recently wrote that blockchain technology has already begun "a complete restructuring in the payments industry." He analyzes the links between venture capital, primary public offering (IPO) and the latest financial technologies, arguing that the "position" of traditional financial institutions now looks "incredibly shaky."
According to Kulkarni's research, about $ 140 billion was invested in the development of more advanced mobile networks and the improvement of DLT technologies.
According to SharesPost Research, the main areas of competition in the market are cross-border transactions, peer-to-peer services (P2P), retail and e-commerce. Kulkarni writes:
"Blockchain and smart contracts will change the relationship between customers and suppliers."
Mentioning how the largest venture companies, such as Y Combinator, Digital Currency Group and Sequoia Capital, invested the most in blockchain and related financial technologies, Kulkarni assumes that these investments will lead to the release of legitimate products.
Another reason why innovative payment technology can completely destroy the traditional system is that consumer behavior is changing. Researchers note that easy-to-use "one-click" payment systems, such as WeChat, Alipay, have significantly influenced the opinions of users.
In addition, innovation systems "can bypass financial institutions and allow direct payments between the parties."
Author: Olga Novikova, analyst of Freedman Club Crypto News
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