The Payment Card Industry’s weird Business Model is a Work of Genius

Richard Gendal Brown, IT-Architect for IBM UK in charge for innovation in banking and financial markets, discusses why the payment card system works the way it does – and why Bitcoin isn’t going to replace it any time soon.

Regular readers will know that Richard G. Brown is extremely optimistic about the long-term potential of Bitcoin and cryptocurrency technology to revolutionize the financial system. But that doesn’t mean he thinks they will overturn all aspects of the system. In particular, Brown is skeptical of claims that Bitcoin will have a meaningful impact on retail payments and break the stranglehold of the payment card companies. Of course, many people disagree with him. Credit card companies are accused of charging obscenely high fees, hindering innovation and being ripe for disruption.

Find more details on Richard G. Brown’s blog “Thoughts on the future of finance”:

http://gendal.wordpress.com/2014/07/05/why-the-payment-card-system-works-the-way-it-does-and-why-bitcoin-isnt-going-to-replace-it-any-time-soon/

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