Panel split at Consensus 2016: Is blockchain a better way to pay?

Rage Review : Whether the distributed ledger as a new database technology can replace the current payment method has caused disagreements in the 2016 Consensus Conference panel. Forzley of Align Commerce explained that the reason why Align Commerce uses Bitcoin to promote cross-border payments between small businesses is the strong liquidity of the system. Bitcoin's strong liquidity allows you to trade. The greater the liquidity of the network, the larger the scale of payments you can make.

Translation: Nicole

Distributed ledgers are often touted as a new database technology, but can they replace current payment methods?

The topic was the focus of a discussion between Julio Faura of Spanish bank Santander; Marwan Forzley of blockchain payments startup Align Commerce; Gys Gyman of global consulting firm Deloitte; Chris Larsen of distributed ledger leader Ripple; and Elizabeth Rossiello of bitcoin payments startup BitPesa, the group representing the current crop of startups.

The discussion focused on defining the challenges facing current payment methods and how blockchain technology, especially Bitcoin blockchain technology, can benefit this service.

Rossiello drew lessons from her previous experience as a startup in Africa, explaining why problems in the system can be solved through public blockchain technology.

Elizabeth Rossiello

She explained:

“If you want to get some money from the U.S. to Senegal, you want to know what the exchange rate is. You’re going to get your answer in 14 days.”

Bitcoin is like railroad tracks

There are many different views on how Bitcoin fits this role, however, there is only one participant who can fulfill this agreement: BitPesa.

She explained:

“Without Bitcoin and the Bitcoin community, I would not be able to pay my employees or run my business.”

Santander’s Faura, on the other hand, believes bitcoin is only suitable for experiments.

He said:

“It’s a great standalone experiment for Bitcoin. But when you want to apply it to people’s lives, I think Bitcoin is a small role. It would be better to use Ripple because Bitcoin needs a different audience and different legal rules.”

Distributed Ledger Selection

But the ultimate discussion when it comes to using digital currencies is the ability to transfer money in and out, said Align Commerce’s Forzley.

He explained why Align Commerce uses Bitcoin to facilitate cross-border payments between small businesses because of the strong liquidity of the system.

Forzley

Forzley said:

“Bitcoin’s strong liquidity allows you to trade. The more liquidity the network has, the larger the size of payments you can make.”

For future developers and startup owners, the panel discussed some key details that they should consider when launching a payment platform.

Hoffman and Larsen echoed each other, saying that developers should think about solutions rather than blockchain technology, especially to understand the full range of payment methods and then choose the one that is most appropriate.

Rossiello concluded:

“If you’re approaching a company that’s using a new technology that’s a game changer, and that comes with some potential regulatory issues, you want to make sure that the technology is going to save a lot of money, or it’s not going to be worth it.”