ECB Executive Board Member Mersch: Welcome blockchain competition

Yves Mersch, a member of the Executive Board of the European Central Bank (ECB), recently spoke about the challenges that blockchain technology poses to the European card payment market at a French bank conference in Paris. The theme of the conference was “Card payments in Europe: latest trends and challenges”.

In his speech, Mersch said that the emergence of more and more innovative payment solutions, including distributed ledger technology, may have a significant impact on "people's payment behavior, such as the use of cards and other traditional payment tools" in the coming years.

Mersch acknowledged that innovative solutions based on card payments “have the potential to further increase card usage and replace cash payments”, but also warned:

“The card payment industry will also face challenges from other innovative payment solutions other than card payments.”

Reforming the card payments industry

One of the challenges is instant payments. Mersch said the European Central Bank's Euro Retail Payments Committee has asked the European Payments Council to start developing a euro instant payment solution based on the SEPA (Single Euro Payments Area) credit transfer system.

Mersch predicts that distributed ledger technology could have a profound impact on the entire financial ecosystem, while also disrupting traditional payment tools and services as well as the payment processing industry.

He said more choices for consumers and businesses were a good thing.

However, ECB board members believe that card transactions still have "huge growth potential in Europe, provided that instant payment systems are implemented and a "unified, competitive and innovative European card payments area" is created through "standardization, interoperability and appropriate security measures."

Mersch concluded:

“This competition is welcome and provides the market with safe and effective solutions, with service providers competing under the same market rules. I am confident that the card payment industry will find the right way to address these challenges in the best interests of users.”

Original article: http://www.coindesk.com/ecb-board-member-blockchain-could-disrupt-payments/
By Daniel Palmer
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information (http://www.8btc.com/yves-mersch-blockchain)