Pierpaolo Barbieri: recommendation

Transcript context

…I very often send remittances to Mexico as a form of charity, and I pay fairly high implicit fees on that transfer. Under this new payments architecture, how exactly does that transfer become cheaper in a relevant ground-to-ground sense? Where is the cost removed? That’s fantastic. The cost is removed because you have a direct way to connect, say, a Mexican wallet, where we operate now, to an American wallet, where we do not operate. If, say, we have a way to connect Ualá in Mexico to an American financial institution, then we can net out the transactions and do one transaction at the end of every day because we have a protocol of transfer so that, instead of doing a SWIFT each time an individual sends money to another individual or a firm sends money to another firm, we can just net it out at the end of the day with one financial partner. You drastically reduce the cost, and then you insert competition, and if you’re not doing this in . . . TransferWise is doing a version of this in Europe, and increasingly in other countries. But I think that you could foresee a world where there’s a federation of financial institutions or wallets that have non-SWIFT connections between them that allow those private protocols. You could even have it with a stable coin in the middle at some point to net it out in a way that it doesn’t involve individual transactions that increase the cost. The people I send money to, they’re not really literate. In most regards, they’re not numerate. Do they still have to schlep to a branch office in Iguala and show an ID and pick up the money?…

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