The Influence of Cryptocurrency on Payment Solutions in the Middle East | SiGMA Eurasia 2024

Summary

In a panel discussion sponsored by BitCashier, industry experts from Fireblocks, ZBX Crypto Exchange, Lunu, and Checkout.com explore the impact of digital assets on payment solutions, particularly in emerging economies. They delve into the role of stablecoins, CBDCs, and cryptocurrencies in facilitating faster, cheaper, and less risky transactions, while addressing the challenges of regulatory compliance and the coexistence of traditional fiat systems. The conversation highlights the potential for a two-tiered financial system integrating digital assets and fiat currencies in the coming years.

Takeaways

• 🎙️ The panel discussion focused on the impact of cryptocurrency on payment solutions, particularly in the Middle East, and was sponsored by BitCashier.
• 🏆 Adam Levan, the moderator and VP of corporate strategy at Fireblocks, introduced the panelists, highlighting their roles in the cryptocurrency and payment industry.
• 🤝 Ash from Checkout.com emphasized the company's role in bridging the gap between fiat and digital currencies, servicing global clients including PlayStation and Google.
• 💼 Charles Whitby Smith, CEO of BitCashier, discussed their platform's focus on crypto payment processing and settlement, especially in the gaming and gambling sectors.
• 🔄 Dave Pulis from ZBX Crypto Exchange spoke about the need for fast settlement in the financial industry and the role of stablecoins in addressing this issue.
• 🌐 Julian Goffin, CEO of Lunu, touched on the challenges of correspondent banking and how stablecoins offer a solution by providing a more stable form of payment.
• 💡 The panelists agreed that digital assets, including stablecoins and cryptocurrencies, offer benefits such as quicker transactions, reduced risk, and lower costs.
• 📉 Dave Pulis highlighted the preference for USDT (Tether) in the market due to its widespread use and acceptance, despite regulatory concerns with stablecoins.
• 🔮 Looking towards the future, Julian Goffin predicted an increase in the adoption of stablecoins and the possibility of more countries creating their own stablecoins.
• 🏦 Charles Whitby Smith expressed concerns about the increasing regulatory pressures on the crypto industry and the challenges it poses for businesses.
• 🔄 Ash from Checkout.com foresees a convergence of traditional payment methods and digital currencies, with a focus on improving settlement times and reducing costs in e-commerce.

Q & A

What is the main topic of the panel discussion in the script?

The main topic of the panel discussion is the influence of cryptocurrency on payment solutions, particularly in the context of digital assets and their integration into existing financial systems.

Who are the panelists mentioned in the script and what are their roles?

The panelists are Adam Levan, the moderator and VP of corporate strategy at Fireblocks; Dave Pulis, director of zbx crypto exchange; Julian Goffin, founder and CEO of Lunu; Avish Car, head of partnerships of digital assets and web3 at Checkout.com; and Charles Whitby Smith, CEO of BitCashier.

What is the role of Checkout.com in the cryptocurrency space as described by Avish Car?

Checkout.com is a payment provider that helps bridge the gap between fiat and digital currency. They support major companies like PlayStation, Google, and Sony, as well as blockchain community entities such as Coinbase and blockchain.com, facilitating onramping and off-ramping in the fiat ecosystem.

What does BitCashier do according to Charles Whitby Smith?

BitCashier is a crypto payment processing and settlement platform. They operate in industries such as gaming and gambling, and cater to corporate industries that want to use crypto as a form of payment, focusing on on and off-ramping, converting crypto to fiat.

What is the primary focus of zbx crypto exchange under Dave Pulis's direction?

zbx crypto exchange, under Dave Pulis's direction, focuses on providing a payment aggregator for emerging economies and facilitating fast settlement in fiat, which is identified as one of the significant problems in the industry.

What does Julian Goffin believe is the main issue with correspondent banking in the payment industry?

Julian Goffin believes that correspondent banking is a real problem in the payment industry, especially in places like Malta, where even main banks have issues finding correspondent banks for USD payments.

What is the panel's consensus on the role of stablecoins in the current financial system?

The panel generally agrees that stablecoins provide a solution to volatility issues associated with cryptocurrencies like Bitcoin and Ethereum. They are seen as ideal for transactional cases in business due to their relative stability and the comfort they provide to businesses.

Why does Dave Pulis believe USDT is the most used stablecoin in the market?

Dave Pulis believes USDT is the most used stablecoin because it is in high demand and widely accepted. He compares it to investing in a project with a superior team rather than superior technology, suggesting that market demand drives the adoption of USDT over other stablecoins like USDC.

What challenges does Charles Whitby Smith foresee for the adoption of cryptocurrencies in the payment industry?

Charles Whitby Smith foresees regulatory challenges as a significant hurdle for the adoption of cryptocurrencies. He mentions that governments are opposed to alternative financial systems and that compliance issues are becoming increasingly stringent, especially when settlements involve crypto exchanges.

What does Avish Car see as the future of money movement and settlements in B2B and B2C models?

Avish Car sees the future of money movement and settlements being fundamentally changed by blockchain technology, which offers alternatives to traditional banking systems. He anticipates a convergence of digital currency as assets in settlement forms and the coexistence of these new models with existing payment methods like Visa and MasterCard.

What is the panel's view on the pace of adoption and integration of cryptocurrencies into the mainstream financial system?

The panel acknowledges that the adoption of cryptocurrencies is a gradual process. They note that the technology is still relatively new and that it will take time for regulatory frameworks to develop and for the market to mature. They also emphasize the importance of patience and allowing the technology to evolve naturally.