(BlockBar) Since 2017, real-time payments have been made in the eurozone, but only about half of the banks in eurozone have participated in this initiative. However, as Facebook’s Libra stablecoin is becoming a competitor for local banks, the real-time payment schemes may be accelerated.
Etienne Goosse, Director-General of the EPC (European Payments Commission), said that regardless of the success of the Facebook’s Libra project, competition from technology companies already existed and banks needed to grow faster. Large technology companies have obvious advantages over fragmented banking systems. “They have a global solution. That is, under a global circumstances, to provide something that many consumers seem to feel great about. So it is necessary that the banking industry should take immediate actions towards it, or they will be trapped.
Goosse also pointed out that although the EPC (European Payments Commission) instant payment standard has been adopted by about 60% of banks and payment service providers in the eurozone, it will not be extended to all banks in the eurozone until the end of 2020. Senior EU banking officials believe 2020 is a credible goal, but they also point out that the entire eurozone needs to be covered if the system is to cross national boundaries.
In addition, the real-time payment system may not be enough to prevent the share of banking users from being stolen by financial technology companies, which only need users to install an easy-to-use mobile application. Facebook can also make full use of its social and chat platforms.
In the face of Facebook’s Libra program, the director of the Federal Financial Regulatory Agency of Germany urged regulators to set standards. In addition, the Swiss-based Bank for International Settlements (BIS) commented on the potential threat posed by the entry of large technology companies into the financial services sector to the banking sector.
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