As real time payments take their place amongst the well embedded tools of any cash manager, new technologies are emerging on the horizon. Request to Pay in the UK and Europe, for instance, is gaining attention across the region as a framework with the potential to enhance customer experience and reduce costs in the fund collection journey.
Even further in the future, digital currencies are setting out their stall. Whilst speculation still reigns on potential use cases in cash management, it’s clear that they hold much potential.
CBDCs (Central Bank Digital Currencies) could help to spur further economic growth by making payments and settlements more efficient and cheaper, according to HSBC’s CEO, Noel Quinn.
As one of the world’s largest financial institutions, with deep experience of cross-border payments and foreign exchange markets, HSBC will continue to be involved in discussing and developing CBDCs. We are already working in partnership with many central banks, including those in the UK, France, Canada, Singapore, mainland China, Hong Kong, Thailand and the UAE, as they each consider how CBDCs can best work for them.
It should be noted, though, that if stablecoins and cryptocurrencies are to become relied upon in the same way, they will also require regulation that is commensurate with the risks they create. Even then, only designs that are sufficiently well anchored to achieve price stability, and correspond with current approaches to financial crime prevention, are likely to be useful as a reliable and safe means of payment.