European Banking Association: Crypto Technologies are a Major Innovator in FinTech

The European Banking Association (EBA) has issued a new research paper on Crypto technologies, a major IT innovation and catalyst for change. The paper covers four use cases of crypto technologies: currencies, asset registries, application stacks and asset-centric technologies. The EBA paper perceives the distributed ledger to be the driving innovation:

“At the core of this invention is the concept of ‘distributed consensus ledgers.’ These ledgers make it possible to jointly create, evolve and keep track of one repository of transactions or other successive events over a shared network (documenting, for instance, the ownership of value) without maintenance or administration by a central authority”.

The most intersting and promising for transaction banking and payments industry are mentioned asset-centric technologies, like Ripple, Stellar and Hyperledger.

“Currently, asset-centric developments are potentially the most interesting cryptotechnology-related category for transaction banking and the payments industry. This conclusion has been drawn based on the fact that developments in other areas are still impeded by technological and regulatory challenges, even though these other categories also hold considerable future promise. […] Asset-centric developments have potential and current applicability regarding today’s activities of financial service and payment organisations, because they can operate in an integrated fashion with legacy IT, legal frameworks and existing assets (currencies, stock, bonds etc).”


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