Laura WilesAidene Walsh, Chair of PSR, has delivered a speech at the Innovate Finance Global Summit on innovation from a regulatory perspective and promoting development in payment systems.
The speech referred to recent headlines on the rise of AI and the relationship between data and payments, Blockchain, QR codes, digital ID, smart contracts, Open Banking and the central bank digital currency. Walsh also noted the difference between reactive, adaptive and disruptive innovation, highlighting that while innovations have in some circumstances delivered real benefits, such as contactless payments or digital wallets, others have been harmful, like APP scams or cyber-attacks. She acknowledged that in some areas, regulation “needs to play catch up” to address the consequences.
The speech emphasised the need to see innovations in a wider context, and for an awareness of the rules and requirements which might apply to a particular system, in order for it to function effectively. From PSR’s perspective, Walsh noted the following focus areas:
- With cards now the dominant method of payment, and questions about its alternatives, unlocking account-to-account payments for retail transactions is a key part of PSR’s strategy
- A central set of rules and standards to facilitate the success of UK open banking
- The emergence of a digital pound