PSD2 and block chains: support each other


nnnThe new European payment service instruction PSD2 is not modified on the existing system, but provides a new system, and encourage market participants to think about how to be the best choice. It can be said that there is the same goal as the block-based payment model. And PSD2 helps block-chain technology to drive new business opportunities. Furthermore, the block chain helps to achieve the goal of cashless payments.n
nnTranslation: Annie_Xun
nEurope is about to carry out large-scale regulatory adjustment, this will fundamentally change the field of payment. And may unexpectedly promote the development of block chains.n
nI’ll explain it. Everything starts with PSD2, a European payment service directive that is scheduled to take effect at the beginning of 2018, with the aim of changing the way banks treat data. Although it sounds like auspicious, the result will be just the opposite. In accordance with the new regulations, as long as the customer requirements, the bank will share with the authorized third party customer information.n
nThis will enable a large number of financial services to use an important asset that has always been seen as private: customer data.n
nObviously, this is more conducive to financial technology companies, rather than banks, because banks are required to give up an important part of competitive advantage (customer transaction history and asset allocation information) to help the reformers.n
nAnd it also sets out a deeper goal: to promote innovation in the field of pay without cost.n
nn
nChange policyn
nEuropean mainstream opinion is a legacy of payment channels hindering business and financial growth. 17 years ago began to upgrade, the central bank system and monetary coordination, reached its peak in 2014, large-scale finishing of the EU cross-border payment.n
nPSD2 is different from the existing system is not upgraded, but to create a new one. The new rule is not to explore how to make the process more efficient, but to reflect how to pay. Not telling the market participants how the new system should be, but letting them find the answer. It opens the data access channel, the purpose is to provide them with a powerful tool to do so.n
nDoes this seem to be familiar? This is what global block-chain thinkers and practitioners do: how to use new technologies to improve existing processes while developing new processes, avoiding legacy systems, releasing new trends and changing the way people use money.n
nIn addition to sharing common long-term goals, PSD2 will also help block-chain projects and expand business opportunities.n
nFor example, financial institutions can cooperate to provide block-based payment services. Bank accounts and encrypted currency shares can be integrated into the wealth management portfolio. If the collateral is in a different form, the operation of the distributed books trading platform can be fundamentally changed. The need to protect free data streams can provide tremendous opportunities for block chain security enhancements.n
nn
nSubtle changesn
nBut careful observation can find a stronger symbiotic relationship. Why is the European financial regulator attached to raising the pay efficiency to a new level? It is a part of the cash replenishment measures that are replicated globally.n
nThe modern project that replaces cash with electronic payments has experienced a lot of friction. However, the smooth payment system can reduce the obstacles. By combining it with a large number of applications that support a device management finance, you can get a new service that changes your financial philosophy.n
nBlock chains can share data in relatively de-centered and selective transparent environments, and thus can be the connective tissue of the new system. It can guarantee the anonymity of electronic payments, thus helping the prudent public to accept the cashless advantage.n
nThis is also the most likely basis for block-based services to enter the mainstream of the breakthrough: not with a better process to replace the existing system, but the composition of the threatless background of the new system.n

Leave a Reply

Your email address will not be published. Required fields are marked *