At this year’s PAY360 conference held at London’s Excel – one of the largest payment events of the year in the UK –  more than 5,000 payment and finance professionals from around the globe gathered to network and share insights on the hot topics in the industry.

The Fintech Times took the opportunity to catch up with Lloyds Bank and fast-growing fintech CoBa Technology – a cloud-hosted platform that seamlessly connects banks and businesses – to learn more about their recent collaboration.

Robin Scher, head of fintech investment at Lloyds Banking Group and Tom Stoddart, head of market sales at Lloyds Banking Group, were joined by Carl Hasty, CEO and co-founder of CoBa, to discuss their partnership as well as how they are collaborating to enable clients to digitally manage their banking needs through automation and workflow connections.

Investing in startups

According to Scher, Lloyd’s created a £50million fund internally to invest in early-stage fintech startups in order to “reduce the cost of change or increase the pace of change”.

He explained why that included CoBa: “One of the things we look for and we absolutely love is great founders with real vision and an ability to execute. We look at the product-market fit as well, something that we think is going to work in the market. We also invest in things that we are going to learn from, that will innovate with us and partner with us in a true partnership fashion.”

In agreement, Stoddart added: “We look for an aligned philosophy particularly with the purpose that we have as an organisation. An alignment over goals of what looks good from a execution and delivery perspective is absolutely critical.

“What we have found by working with CoBa is that as a large organisation with multiple data sources we can bring that together and hand it to CoBa who are much more nimble and agile in terms of the way that they can deliver solutions for our customers.”

Hasty also added: “We focus on strategic relationships and want to work with a bank right at its core. We’re very much about bringing the bank and the client together.”

To find out more about their collaboration and how the strategic partnership plans to co-create tailored solutions for clients., watch our interview below.

The Fintech Times meets Lloyds Bank and CoBa Technology at PAY360

Blockchain, heralded for its potential to transform industries, is currently undergoing a divergence from its original vision, marked by a prioritisation of speculative interests over core principles like scalability and decentralisation.

Calvin Ayre, venture capitalist and founder of Ayre Group, a global enterprise supporting real estate projects, businesses, and technologies, shares insights centred on the BSV Blockchain’s Teranode scaling solution.

The BSV Blockchain’s Teranode scaling solution will fundamentally shift how the world views blockchain technology while fulfilling Satoshi Nakamoto‘s vision for Bitcoin as a robust and secure network that can scale to meet any demand.

The current view of blockchain technology (and cryptocurrency) focuses almost exclusively on record-high fiat values of tokens like BTC (which is wrongly referred to as ‘Bitcoin’ by mainstream media). The perception of Bitcoin as ‘digital gold’ is light years from Satoshi Nakamoto’s original vision of a highly scalable platform to handle peer-to-peer electronic cash while offering safe, secure, and immutable data storage for enterprises and governments.

From inception, Satoshi envisioned a network that could scale to exceed the transaction capacity of Visa and Mastercard. Months after Bitcoin launched, Satoshi stated: “The existing Visa credit card network processes about 15 million Internet purchases per day worldwide. Bitcoin can already scale larger than that with existing hardware for a fraction of the cost. It never hits a scale ceiling.”

However, some developers betrayed this revolutionary blueprint making controversial alterations to the Bitcoin network protocol. The resulting technology (BTC) was limited to an underwhelming seven transactions per second (TPS), rendering it unfit for mass adoption, so it leveraged price and became ‘digital gold’, creating today’s reality.

The Teranode protocol upgrade is the light at the end of the tunnel, enabling the BSV Blockchain—which honours Satoshi’s original vision—to process upwards of 1.1 million TPS, dwarfing the current capacity of both Visa and Mastercard combined. Better still, it will accomplish this at a fraction of the cost.

Teranode has three main components:

• Distributed network of core nodes
• Specialisation and isolation of components and their roles
• Microtransactions, combining information and value

With Teranode at its core, BSV will be the backbone infrastructure for a global system of multiple specialised overlay networks.

The blockchain sector is notorious for overpromising and underdelivering. However, Teranode is not some whiteboard mirage that teases a technological paradise that never gets any closer.

In February, the BSV Association partnered with Aerospike, a leader in real-time, high-performance NoSQL databases, to subject Teranode to a rigorous six-month stress test ahead of its full node implementation later in 2024.

Teranode’s impact will be both dramatic and widespread. Enterprises and government agencies will finally have a secure and cost-effective next-generation platform to process and store sensitive information.

One example of Teranode’s transformative potential is as a repository of verifiable and auditable information on which new artificial intelligence (AI) applications can be trained. The net result will be large language models plagued by fewer ‘hallucinations’ that can be damaging and cause many people to lose faith in AI.

Web 3.0

Web 3.0 is another technology that has run far ahead of tangible progress, mainly because no public blockchain can handle the staggering number of individual addresses that IPv6 permits and Web 3.0 demands. Again, Teranode-enhanced BSV’s unbounded capacity will open the floodgates and finally allow these long-stalled Web 3.0 projects to move forward.

BSV blockchain further distinguishes itself from the competition through its willingness to work within existing laws and regulations. The BSV Association’s recent introduction of enhanced Network Access Rules will facilitate Digital Asset Recovery, the process by which victims of lost or stolen assets can reclaim their property via legal channels. The mantra of ‘not your keys, not your coins’ may suit ‘crypto bros’, but it’s a significant obstacle to a more inclusive financial system looking to grow beyond its clubby early-adopter roots.

Emerging technologies

I’ve always had a fascination with emerging technologies, both in my personal and professional lives. As an early Bitcoin adopter, it was hard to watch a small core of developers hijack the network for their selfish aims, redirect it onto a siding, and ultimately halt its future potential. But there is still time to reverse this trend, get Bitcoin back on its original track, finally deliver on Satoshi’s revolutionary vision.

Outside BSV blockchain, the prevailing obsession with token value is what happens when blockchains are incapable of doing anything beyond marking time. The combination of BSV and Teranode makes for some unbeatable technology.

In the past, self-interested developers forced the world to accept their degraded, proprietary version of Bitcoin, their motto was ‘don’t trust; verify’. A noble sentiment, and I don’t expect anyone reading this to take my words on faith. Investigate the reality for yourself. Take a closer look at BSV and Teranode and see if they aren’t everything, I said they are. You’ll be glad you did.

To find out more about BSV Blockchain and Teranode, visit www.bsvblockchain.org/teranode.

The finance sector exists at the intersection of continuous innovation and strict security demands, where the intricacies of IT support pose continuous challenges for professionals striving to maintain the delicate balance between security, efficiency, and reliability. Within this complex landscape, smart locker technology emerges as a noteworthy solution, recognising its potential to enhance productivity and convenience for employees and IT support staff.

Anthony Lamoureux, CEO of Velocity Smart Technology, the cloud and Internet of Things (IOT) provider, makes the unlikely connection between smart locker technology and the finance industry.

The finance sector, known for its complex and fast-paced environment, is increasingly recognising the pivotal role of workplace technology, in not only meeting operational demands but also in enhancing the overall experience for employees. In fact, 62 per cent of finance services employees stated that adapting to new technologies boosts their workplace motivation.

Amidst the digital transformation, smart lockers rise as an innovative solution, not only reshaping the finance workplace landscape but also providing a strategic avenue to boost IT operations, minimise risks, and strengthen overall security. Beyond that, smart lockers foster a culture marked by efficiency and employee empowerment in the finance sector.

Embracing change in workplace dynamics                                                                    

Financial institutions are redefining their approach to employee experience, with a significant finding revealing that almost half (48 per cent) of employees report a lack of financial well-being support from their employers.

Amidst this challenge, innovative solutions such as smart lockers are emerging to address not only the security concerns but also to enhance the overall work experience. These lockers, equipped with biometric access and cloud-based interfaces, not only enhance security measures but also seamlessly integrate into employees’ daily routines.

As the finance industry witnesses a growing number of companies directing employees back to the office, signalling a significant departure from remote work policies, the integration of tools like smart lockers emerges as a pivotal element in cultivating an optimal work environment.

Beyond serving as secure storage solutions, smart lockers play a pivotal role as a cornerstone for refining workflows.

This functionality ensures that employees can navigate the management of their personal belongings and work-related tools, thereby fostering a seamless and organised workplace. Ultimately, this integration contributes to a heightened level of productivity and efficiency within the organisational setting.

The top three considerations for finance institutions seeking to enhance employee satisfaction

• Streamlined processes: Beyond offering secure storage, smart lockers streamline administrative processes. From handling equipment distribution to managing resources efficiently, these lockers contribute to a smoother workflow, saving time and boosting productivity.
• Employee well-being: A well-organised and secure workplace positively impacts employee well-being. Smart lockers, by addressing security concerns and enhancing convenience, contribute to a more positive work environment, leading to increased job satisfaction.
• Holistic approach to employee satisfaction: Employee satisfaction extends beyond the immediate work tasks and encompasses the overall workplace experience. Financial institutions recognise that fostering a positive work culture involves not only streamlining processes and enhancing security but also creating a system where employees feel empowered.

By embracing a holistic approach that combines streamlined operations, enhanced security, and a focus on well-being, finance institutions with smart lockers create an environment where employees thrive.

Digital workplace technology investment                                                                                 

Investing in digital workplace technology has garnered significant interest within the finance sector, with a staggering 59 per cent of finance sector respondents expressing a willingness to invest in this technology, recognising its potential to enhance productivity and convenience for employees and IT support staff.

Financial institutions recognise that content and fulfilled employees not only tend to be more productive but also serve as drivers for innovation and collaboration. In this ever-changing era, where retaining and attracting talent are critical concerns, prioritising employee satisfaction emerges as a strategic imperative.

This surge in interest reflects the finance sector’s proactive stance in adopting technological solutions to address ever-changing workplace needs. Beyond the sheer numbers, the willingness to invest in digital workplace technology signifies a broader acknowledgement of its transformative impact on operational efficiency and employee satisfaction.

The industry is starting to understand the nature of modern work environments and is poised to leverage digital tools that not only streamline processes but also foster a more collaborative and adaptable workspace. This investment not only showcases a commitment to staying at the forefront of technological advancements but also positions the finance sector as a leader in adopting innovative solutions to meet the changing needs of the workforce.

It’s not just a metric to monitor but a guiding principle that shapes workplace cultures, fosters loyalty and propels the entire organisation towards sustainable success.

Looking ahead: a tech-forward finance culture

As financial institutions embrace digital transformation, the integration of smart lockers represents a forward-thinking approach to workplace dynamics.

The infusion of capital into technology not only showcases a dedication to enhancing employee satisfaction but also establishes the finance sector as a pioneer in embracing innovative solutions that adeptly respond to the ever-changing needs of the workforce.

By fostering a mindset of continual innovation, finance institutions create a ripple effect throughout their organisational fabric, motivating employees to explore new ideas, experiment with novel approaches, and actively contribute to the ongoing evolution of the workplace.

This cultural transformation becomes a driving force, not only for the successful integration of smart lockers but for navigating the broader landscape of digital transformation, ensuring that the finance sector remains at the forefront of industry trends and poised for sustained growth in the digital era.

Since point-of-sale (POS) card terminals were first introduced by Visa in 1979, the payment system has hardly seen much advancement. Despite this, as fewer people stick to using cash, POS terminals are increasing in importance for large and small businesses alike.

Here, Rob Hay, CEO of MyPOS, a European point-of-sale (POS) system developer, explains his view on why now is the time to significantly disrupt the POS sector.

It is estimated more than three million POS card machines are used by small businesses, independent merchants, retailers and restaurants across the UK today, enabling merchants to effectively process payments in an increasingly digitised, cash-free society.

With cash usage now less than half of that of a decade ago, and with cash usage predicted to continue to decline as debit card and contactless payments become consumers’ default form of payment, the UK mobile POS market is set to nearly double (+93 per cent) by 2027.

This surge in usage of POS systems follows a decade of phenomenal technological innovation across the broader retail and financial services sectors – innovation that has seen both card readers and many other areas of retail payments digitally transform to better serve shifting consumer demands. From ‘just walk out’ stores to biometric checkout technology, as well as new Android-based payment card machines, it has become easier for customers to purchase goods more quickly and securely than ever before.

Yet despite this innovation, and the surging growth of the POS market, many card payment solutions – both legacy and new – are failing merchants, primarily through their inefficiency and cost. Mobile POS systems in particular is one area of retail payments that remains ripe for further transformation.

Card machine providers are failing their users

One of the main frustrations independent retailers face around POS systems is that, when it comes to the provision of these systems, independent retailers and small businesses have tended to turn towards traditional Independent Sales Organisations (ISOs). Yet it is these traditional ISOs that often impose not just the highest costs of renting and operating a card machine (often in the form of both a fee for the physical POS device, as well as expensive monthly retail fees), but also an inflexible contract on the retailer that could be as long as 18 months.

This combination of high costs and ‘locked-in’ contracts is especially damaging to small businesses and independent retailers in the current UK economic climate, in which job vacancies are at a historic high, inflation remains stubbornly persistent, and growing numbers of SMEs are filing for insolvency. It is during these circumstances particularly that independent retailers don’t need the headache and burden of another extortionate, locked-in operating cost.

Another way in which many current card machine providers are failing their users is through access to funds. Typically, many payment providers are only able to process and provide access to funds hours, or sometimes even days, after a transaction. In other cases, some providers are able to provide instant payouts, but for a fee. For larger organisations, this delay may not pose a problem, but for smaller or independent retailers, this delay can lead to considerable cash flow issues.

Legacy limitations

Despite advancements in POS technology in recent years, many small businesses and independent retailers also remain hindered by the limitations of legacy POS systems and traditional card readers. This is especially true for those retailers using bank-provided payment card machines and POS solutions, which may not be cloud-based, lack digital features, can’t handle cross-border commerce, and can’t integrate with other payment platforms or software, making them increasingly incompatible in today’s operating environment.

Fortunately, new fintech-based POS solutions that are entering the market are designed precisely to overcome these challenges. Specifically, new payment ecosystems have been designed not just as a form of processing payments, but rather as a partner that can better help businesses overcome the challenges they regularly face in relation to payments more broadly – such as loyalty and reward programmes, the payment of suppliers, handling company expenses, payment tracking and reconciling different payment types.

To help reduce businesses’ POS system costs, one recent innovation is an app such as myPOS Glass – the application enabling any retailer to take payments on their phone (either iPhone or Android). This means the ability for micro-entrepreneurs and side-hustlers to accept digital wallet, credit and debit card payments anywhere. No additional hardware needed.

Another way in which fintech-driven payment platforms are working to reduce the costs of card machines and modern payment tools is by providing POS services without any long-term contracts or monthly fees, meaning the only overhead is the initial hardware purchase. Furthermore, new industry-leading payment providers also enable instant settlement of funds for no additional fee, with the market-leading solution enabling merchants to access their funds for no extra charge just three seconds after the transaction has occurred.

New cloud-based solutions

Finally, a new generation of card machines and POS systems are actually fit for purpose in today’s digital-first world. These new systems are cloud-based and can be integrated with other online payment methods through ready-to-use tools.

Some of the features go far beyond the expectations of a simple payment method – like giving small businesses the chance to receive an online payment without having a website, create customised gift cards for clients or top-up pre-paid mobile phones. Merchants can also use these newer fintech solutions to track customer data, thereby increasing customer engagement.

POS card machines are the lifeblood of many UK small businesses and independent retailers. As more and more consumers switch to digital forms of payment, there is a huge opportunity for these retailers to capitalise on this trend and turn it to their advantage.

It’s our responsibility, within the payments sector, to ensure they are equipped with the best possible tools to do so.

Atom Bank, the UK’s first app-based bank, is supporting the ‘Women in Technology’ programme at Durham University by funding two scholarships for prospective female students from low-income backgrounds.

Two Atom-funded scholarships will offer successful applicants £4,000 per annum for all three years of their course at Durham, as Atom and the University seek to inspire future female tech leaders.

Alongside funding the scholarships, Atom will provide mentoring, internship, placement and leadership opportunities to the successful applicants. The bank revealed that it is particularly keen that the scholars also help the University and Atom to promote tech to women and girls across schools and colleges in the North East.

According to Tech Nation, women only represent around 26 per cent of the tech workforce in the UK, while women take just five per cent of leadership roles in technology, highlighting the scale of the challenge and the need for focused initiatives such as this.

In the 2024 Complete University Guide, Durham’s department of computer science ranked fourth for its teaching and joint fourth for the employability of its students. The department has a stated objective of making Durham the number one University in the UK for women to study computer science.

Atom’s support reflects this commitment and is the latest element of a wider programme of cooperation between the bank and the University under their five-year partnership.

‘Targeting the next generation of leaders for Atom’

Edward Twiddy, director of ESG at Atom, explained the decision to support the Women in Technology programme in this way: “Through this funding, we are unashamedly targeting the next generation of leaders for Atom and for the technology businesses of the future.

“Applications for the scholarships are now open, and we are really excited at the prospect of meeting the people who we hope will lead Atom in the future through their engagement in this programme.”

As well as being a signatory of the Tech Talent Charter, Atom also played a major role in supporting Durham University in establishing the Diversity Matters project, promoting equality, diversity and inclusion in STEM across industry and academia. The bank was also one of the sponsors of the highly successful Tech Up programme that Durham University’s Professor Sue Black pioneered with the support of the Institute of Coding.

Professor Matthew Johnson, head of the department of computer science at Durham, also added: “We are grateful to Atom Bank for their generous support as we strive to increase the reach of the highly successful AMI scholarship programme. Their contribution will help us to foster greater participation of talented women in our undergraduate degree programmes. The underrepresentation of women in the field poses a significant barrier to innovation.

“Our department is committed to not only creating a welcoming and inclusive environment, but also one that is vibrant, diverse, and thriving. The scholars participating in this program are called upon to serve as ambassadors for the department. Consequently, the impact of these scholarships extends beyond their recipients, influencing and inspiring a broader spectrum of students.”

Encrypted messaging services are a double-edged blade. On the one hand, they’re great for consumers to feel like their messages are safe, but for businesses, it is a different story. With communications regulations extending to messaging services, firms are now turning to technology to ensure they remain compliant.

One technology that could massively impact the sector is artificial intelligence (AI) according to Ben Chrnelich, president and CFO, Symphony, the regtech. Diving into the reputational challenges facing firms, how tech can help with compliance issues, and how regulation can be improved, Chrelich says:

Empowering finance through technology: a compliance imperative

The financial sector is currently in the midst of a significant regulatory shakeup. Since late 2021, $2.5billion in fines have been issued to financial services firms, predominantly in the US. Not to mention executive pay deductions and staff dismissals. All have been the result of compliance failures in business communications. This raises questions about reputational damage and how communications technology can be deployed in a compliant and user-friendly manner.

The requirement for firms to ensure their employees’ communication meets record-keeping requirements now extends beyond in-person meetings, emails and telephone calls. In the rapidly evolving communications landscape, these fines have demonstrated the need for financial professionals to meet their clients where they are – more often than not, on video – in a way that meets regulatory standards.

Beyond the fines, the relatively new trend of senior leaders being dismissed or having their compensation impacted highlights the urgent need for firms to resolve this issue. Especially seeing as many will have invariably been unintended breaches.

Banks aren’t the only ones facing this challenge. The widening regulatory net cast by the SEC and CFTC now encompasses broader areas within financial services. It now covers asset managers and potentially insurers too. This expanding scrutiny emphasises that the time for firms to take proactive measures is now. Consequently, we’re already witnessing this shift beyond core banking institutions.

Protecting reputations

The use of unauthorised platforms like WhatsApp for sensitive financial communications extends far beyond financial penalties. Also, it casts a shadow over investor confidence and jeopardises these institutions’ capacity to operate as global financial hubs.

As the US takes a stringent stance on compliance issues, financial firms in other parts of the world are bracing themselves for increased regulatory scrutiny.

Neglecting this approach risks not only reputational damage but, more significantly, a detrimental impact on investor confidence that could divert business elsewhere. For firms outside of the core banking institutions, non-compliant messaging fines have a much larger impact.

Unlocking the technology solution

In the face of these challenges, technology emerges as a powerful solution. Financial institutions are increasingly turning to AI-powered tools to monitor employee compliance with regulations. These tools not only serve as a shield against unauthorised messaging but also provide employees with a means to protect themselves from the potential fallout of non-adherence, which could include job loss, compensation reductions, or damage to personal reputation.

Firms are increasingly offering a range of tech solutions to employees, ensuring that their communication remains compliant across various channels, from text chats to audio and video. This technology offers a win-win solution, enabling staff to communicate effectively and efficiently. They can continue with ‘business as usual’ while upholding regulatory standards. A key component to the success of this tech is data security; as more sensitive data is moved, maintaining that high confidentiality is of utmost importance.

Enhancing regulation

Recent fines in the United States underscore the fact that compliance is no longer a legal or back-office issue. Protection against information breaches and disasters is mission-critical for financial services firms, and while technology is key to the solution, we must turn to regulation to provide a clear path forward so that, as the communications landscape develops, so too does the technology and regulation that follows.

As regulators tighten their grip across the Atlantic, UK and European firms have a unique opportunity to strengthen their systems. Furthermore, they can empower staff to communicate confidently in ways that are both convenient and compliant. Striking the right balance is key to tackling this issue effectively.

Technology, in the form of AI-powered tools and compliance-focused communication solutions, provides a path forward. However, it must align with strong regulation that ensures transparency, accountability, and adaptability to evolving communication needs.

Institutions that recognise this issue promptly and work in harmony with regulations will be spared from the consequences. They’ll be poised for success – especially if they adopt the right technology solutions. Together, these elements can safeguard the integrity of the entire industry. Furthermore, they can foster liquidity and economic growth.

Going forward, compliant messaging will continue to be scrutinised. Especially, when it is used to mitigate against information breaches. This is a complex issue with global implications. It affects institutional reputations, investor confidence, and the very core of the financial system.

In the current period, blockchain technology is predominantly used for financial transactions. However, there are emerging trends that are redefining the application of blockchains with purposes like fraud detection, AML and supply chain management. 

As emerging technologies take a big piece of global attention, all eyes are now on the convergence of blockchain technology, big data and AI. These technologies put together are creating something magical for businesses that helps them perform better. 

Furthermore, they are trying to make things cheaper for both the business and the end user. Let’s take a dive into the intersection of these emerging technologies and where they can take us in the future. 

A brief introduction

Artificial intelligence (AI) is the set of technologies that helps in identifying data patterns, recommending actions and automating those actions that are to be taken on the recommendations. All steps are taken independently of or with minimal human interference.

Blockchain technology provides a distributed infrastructure that uses immutable ledgers to record data that cannot be easily erased. Big data refers to the storage, analysis and reporting of insights from vast quantities of data that come in high volumes and at a high velocity.

Using AI for anti-money laundering (AML)

Detecting money laundering has always been a core regulatory concern with blockchain and crypto. Crypto exchanges spend a fortune detecting and reporting suspicious transactions in crypto. However, with human-based monitoring, things are always expensive.

Elliptic, a blockchain analytics firm has integrated AI into its tech stack to detect suspicious blockchain transactions, hackers and money laundering activities. Such activities make crypto platforms more trustworthy.

Fraud detection with big data and AI

Similar to AML, fraudulent transactions also increase the cost of doing business as you have to pay higher premiums for insuring your business. Peer-to-peer platforms have a high degree of fraudulent transactions.

Binance uses real-time machine learning to detect and uncover suspicious transactions in its exchanges, P2P transactions and other marketplaces. This method called the streaming pipeline helps it uncover fraudsters with less human effort, decreasing costs.

Using AI and blockchains to validate data in large databases

In the last two examples, we use crypto-native applications. However, there are many firms that use a combination of blockchain, data and AI to make their businesses more efficient and therefore incur less cost.

One such example is IBM and Walmart. These two companies run a project called the “Food Trust,” which tracks supply chain databases. 

Blockchain technology is used to track and validate points in the supply chain. AI-based data analytics is used to identify patterns in the data and patterns for further process improvement.

Challenges persist

Blockchain being a new technology also faces several challenges. The following points broadly explore a few major challenges that are hindering the growth of this technology.

Bitcoin dominance

The future of blockchain is intrinsically connected to Bitcoin which dominated a bit below 50% of crypto markets (at the time of writing). This poses a challenge to projects that do not involve Bitcoin because, during a bear market, most people move out of other cryptocurrencies and hoard their funds in Bitcoin, Ethereum and a few selected stablecoins.

This causes concerns that even if a project is viable, it would be difficult for it to survive a bear market as the project tokens could be dumped in favor of Bitcoin.

Funding concerns

Several investment and wealth funds lost hundreds of billions of dollars in the crypto winter when projects either shut themselves down or halted operations. Very few of them recovered from that situation.

Bloomberg reports that in Q2 of 2023, crypto VC funding is witnessing an 80% fall since 2022. The core mentioned reason is the regulatory uncertainty. There have been some legal successes like in the case of Ripple and Grayscale, but regulatory concerns are still widespread.

This has caused a funding myth that crypto projects are doomed to fail. Also, a lot of blame can be put on projects that didn’t have much innovation at the core of their project and just sought funds for personal gains.

Reluctance of institutional players

Institutional players have conducted numerous pilot projects, several of them satisfactorily, yet they are highly unwilling to express their intentions in public.

JPM Coin by JP Morgan has been immensely successful in cross-border payments, yet there is very little information about the project. Even the Food Trust project by IBM did not receive much attention from its founders.

The reason for such reluctance appears the same as in the previous case. There has been very low regulatory clarity with each government delaying the decision for someone else to try first. 

There have been some successes with the UAE and El Salvador, but there is a need for a major economy like in , China or India where there is a very large consumer base.

Concerns around AI

Unethical aspects of AI have been a very large concern for regulators where powerful players could marginalize others. Some AI-generated artworks can be stunning and even better than most skilled artists. These artworks marginalize the human ability to innovate.

There had been a case in the US that was a copyright case, where the court ruled that artworks generated by AI without human involvement cannot be granted copyright protection under US law.

Such incidents are an example of unethical use of AI.

Conclusion

AI and blockchain are emerging technologies and have a very bright future. Both of them are at the cutting edge of innovation. Together they can be used for anti-money laundering, fraud detection and handling large amounts of data. However, their successes critically depend on the challenges that they face, beyond which only the sky’s the limit to their potential.

Abhishek Singh is a serial entrepreneur currently working on Acknoleger and is a vocal advocate of crypto.

This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.

Learn more about Cointelegraph Innovation Circle and see if you qualify to join

Technology is the ‘key delta’ in the race for cross-border payments advancement; according to a new whitepaper from the Payments Association, which celebrates innovation and collaboration across the payments industry.

Cross-border payments have continued to develop throughout the last decade, driven by the globalisation of trade, capital, and migration flows. Despite these factors and successes, the reality is that cross-border payments remain overly expensive, leaving the most vulnerable behind.

While we see domestic payments enjoying consistent advancements and innovations to become instant and completely digital, the story does not read the same for cross-border payments which are yet to benefit from the transformative power of digital technologies.

In light of this, the Payments Association’s cross-border working group delves into the challenges that financial institutions (FIs) face when trying to deliver cross-border payments in its new whitepaper titled ‘King for a Day: Charting the future of cross-border payments‘.

One of the report’s key takeaways is centred around industry scrutiny, which it says must ‘pivot’ away from legacy regulatory issues and focus more on implementing technologies, with “adjustable, rules-based inputs, that can interface between distinct regimes”.

Rasika Raina, senior VP of product management, cross-border payments at Mastercard, explained: “Our competition is archaic technology, not the banks. The problem is that today the industry is, in some cases, using 40 to 50-year-old technology and arrangements, like correspondent banking, to address a $156trillion cross-border payments sector.”

‘Cross-border still represents a huge opportunity’

Gary Palmer, CEO of Payall, also offered his take on the report: “Globalisation touches every country, city and even remote villages. The way we work, receive medical care, communicate, shop, pay and travel have all changed dramatically from technological transformations.

“Overall, just about every part of our lives is radically different than just a few years ago and unrecognisable from 50 years ago. Not so in cross-border payments. The question we must keep trying to answer is can money move at the speed of data globally?

“This whitepaper, completed through industry survey and interviews with leading experts, challenges the status quo with provocative questions, relevant research, and new ideas and ultimately suggests that tech and new paradigms will transform the complex, high-risk and manual mess we call cross-border payments.”

Tony Craddock, director general of The Payments Association, commented: “Payments continue to grow at a phenomenal rate and, within this, cross-border still represents a huge opportunity. This vital piece of research is key in illustrating how technology will be the key driver for the industry to reduce the amount of friction, so people keep more of their money and receive it faster.”

The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has officially released the Distributed Ledger Technology (DLT) Foundations Regulations 2023, marking a significant milestone in the evolution of digital assets regulatory frameworks across the region and at an international level.

The new Abu Dhabi Global Market Distributed Ledger Technology (DLT) Foundations Regulations 2023 provide a comprehensive framework for DLT Foundations and Decentralised Autonomous Organisations (DAOs). This hopes to enable them to operate and issue tokens recognising the unique needs of the Blockchain industry. This new regime comes in line with ADGM’s strategy to foster initiatives in the broader blockchain and digital asset realm.

By setting a global benchmark as the world’s first of its kind, this regulatory framework is designed to be suitable for Blockchain Foundations, Web3 entities, DAOs, and traditional foundations seeking to enhance their operations through DLT.

By harnessing the potential of technology, ADGM’s DLT Foundations Regime offers an effective means to organise and promote governance whilst recognising the industry’s need for decentralisation. The regime’s enactment followed a public consultation with DLT industry participants to obtain user feedback and enhance the regulations.

The new framework should also strengthen ADGM’s position as a global pioneer in the regulations of digital assets.

Abu Dhabi: destination of choice?

Commenting on the launch and the enactment of the framework, Ahmed Jasim Al Zaabi, chairman of ADGM, also explained: “Abu Dhabi is rapidly emerging as the destination of choice for global players at the forefront of digital asset development.

“The introduction of the DLT Foundations Regime marks a revolutionary step forward, reinforcing ADGM’s commitment to a proactive approach rooted in extensive cross-industry dialogue and collaboration with various stakeholders.

“The new regime serves as a driving force for positive change in the digital assets sector. By transforming the blockchain and Web3 landscape, we are moving towards a future characterised by setting global benchmarks with enhanced transparency and efficiency.”

Digital Ledger Technology has progressed rapidly in recent years, and the technology is now at the heart of the global digital assets sector. ADGM, as a leading IFC, remains committed to championing technological innovation and supporting crypto initiatives.

United States undersecretary of commerce for industry and security Alan Estevez recently told reporters at an event in Tokyo, Japan that the U.S. is currently looking to crack down on Chinese access to U.S. cloud-based technologies.

Speaking to journalists at the Mount Fuji Dialogue policy forum on Oct. 21, Estevez confirmed reports that the U.S. was considering applying similar interventionary measures to China’s cloud technology access as it had to artificial intelligence (AI) chips.

Per a report from Nikkei, Estevez said “cloud-based technologies are already fairly ubiquitous. Now, AI itself is also fairly ubiquitous.”

Estevez continued, clarifying:

“The concern is … AI in the future will probably command and control military logistics [and] military radar. Electronic warfare capabilities will be advanced. So we want to make sure that we’re controlling the use.”

As Cointelegraph recently reported, The United States Department of Commerce’s Bureau of Industry and Security released a memo on Oct. 17 shoring up export controls on AI chips. The new requirements would require establishing a worldwide licensing requirement for the export of controlled chips to any U.S.-embargoed country, China included.

Related: US authorities monitor China-linked Bitcoin miners amid national security concerns: Report

In the wake of the recent AI chip export ban, U.S. market leader Nvidia’s stock slipped by nearly 5% as some experts predicted positive movement for Chinese chip manufacturers.

While it remains unclear at this time if U.S. lawmakers intend to introduce a similar ban on cloud computing technology access — the logistics of which would be dynamically different due to cloud-based services requiring no physical export.

Discussions over potential furtherance of export restrictions between the U.S. and China could be aggravated by recent developments. U.S. allied vessels in the Philippines have faced blockades from Chinese coast guard vessels in recent weeks.

A report from Reuters indicates a “slight collision” occurred on Oct. 22 when a Chinese coast guard vessel attempted to block a Philippine resupply ship from reaching its destination.

In response, the U.S. renewed its pledge to protect Philippine vessels “anywhere in the South China sea.”