Voice of the Industry

The rise of digital currency empowered by blockchain technologies

Thursday 3 November 2022 09:40 CET | Editor: Raluca Ochiana | Voice of the industry

Worldline expert Thibault Pelé discusses private blockchains and stablecoins and explains why he believes digital currencies are the future. 


With the decline of cash, digital currency finds itself at a crossroads. Blockchains are on the increase and digital payment methods are becoming the norm. Will blockchain technologies deliver their promise of improving equity and access to all, building trust and fostering innovation? 

Once upon a time, the internet revolutionised the way we communicate. Today, technology is radically challenging the way money could work in the future. An extensive debate is currently going on about the social and economic consequences of blockchains, stablecoins, and digital currencies. 

At Worldline, we believe that implemented responsibly, these could pave the way towards a new era of payments, more efficient and more customer-centric. 

Different blockchain technologies

As the name suggests, blockchain is a chain of blocks that holds information on transactions. Each block contains data in the form of coding. Essentially, a blockchain is a digital ledger of transactions that are duplicated and distributed across the network. The ways the blockchain is implemented can differ. 

A blockchain can be public, where everyone is allowed to enter the network, participate in the consensus, and have a view of all the transactions. Or, it can be private, where only accredited participants are allowed to be part of the network. Transactions and access are managed by a central authority. 

To put it very simply, private blockchain is to intranet what public blockchain is to the internet. 

At Worldline, we leverage private blockchain technology for our solution Worldline Digital Currency as it increases efficiency (by handling thousands of transactions per second compared to 4 transactions per second with bitcoin), reduces the environmental footprint (by 99.99%), and creates a safe environment.

Stablecoin, the game changer for the payment industry 

There exist different forms of cryptocurrencies, each with a different modus operandi.

Stablecoin is a type of cryptocurrency that is pegged to assets such as commodities (for example gold) or fiat money, thus ensuring its value is stable. The usual and simplest way to achieve this is to back your stablecoin 1 to 1. This means that for EUR 1 worth of stablecoin, there is EUR 1 in a vault.  

Stablecoin is an attractive and interesting alternative to fiat money as it keeps its value but is operated digitally on a blockchain. In essence, a stablecoin is a bridge between cryptocurrencies and fiat money.

How digital currencies shape the future of payment processing

Digital currencies are already here. According to recent studies, 87% of merchants in the US consider accepting digital currencies as a competitive advantage. In China, 187 million people are paying with the digital yuan, using their phone

This is neither a surprise nor an epiphenomenon. Traditional payment methods all have their disadvantages. Either they are not convenient to carry, or they run through dedicated schemes and usually come with heavy fees for the merchants. 

Digital currencies, meanwhile, bring interesting benefits: 

  • Merchants can get around the schemes, reduce their costs on transactions, and win new customers.

  • Issuers can manage multiple assets simultaneously as well as manage the acceptance network with a click. 

  • Consumers can have a completely transparent payment experience. 

With traditional payment methods, onboarding can be a pain and digital currencies are here to help. They don’t require a payment terminal and merchants can simply subscribe on the issuer’s platform and start accepting payments. 

Programmable money is yet another advantage of digital currencies. Since they are electronic, conditions can easily be introduced. For example, issuers can set an expiry date or a stipulation that the money follows the inflation rate to protect customers. 

Rethinking and reshaping the fans' journey at an international event

Imagine fans travelling to an international music festival or a sporting event for which a specific digital currency has been created, pegged on fiat currencies. By registering and downloading the dedicated application that issues and manages this digital currency, they will be able to attend the event in a relaxed and secure way. 

Indeed, they will no longer need to change money or withdraw cash. They will be able to pay for drinks, food, and souvenirs using their smartphones, avoiding the risks of carrying cash and credit card fees, while gaining loyalty points. They will be eschewing foreign exchange mark-ups and will protect their purchasing power, no matter the status of their home currency. Partners and merchants will also enjoy the benefits of low transaction fees and instant settlements. Using a digital currency ensures a high degree of stability and protection for the fan community worldwide. 

Of course, digital currencies are not limited to events. Whether you are a marketplace and want to create your own tokens, a bank that wants to provide its own digital currency for its clients, or a public institution issuing vouchers, you’ll find many benefits to embracing digital currencies.

These trends all pave the way for digital currencies to become mainstream. The new breed of digital currencies has been hailed for their perceived advantages when compared with any other currency or form of digital payment, on the basis they are safer to store, easier to manage, more secure for consumers, and faster to transfer. 

At Worldline we have supported several clients in the creation of their own blockchains and payment ecosystem. You can find more information here.

About Thibault Pelé

Thibault is an experienced Product Manager on blockchain and stablecoins at Worldline. Driven by innovation, he takes pride in working on go-to-market strategy and developing products about to change the way we live.

His previous experiences showcase his interest in Finance and Digital Industries, with many years working in investment banking. In addition to his primary job functions, Thibault is committed to the Web3 ecosystem.


About Worldline

Worldline [Euronext: WLN] is a global leader in the payments industry and the technology partner of choice for merchants, banks, and acquirers. Powered by 18,000 employees in 40 countries, Worldline provides its clients with sustainable, trusted, and innovative solutions fostering their growth. Services offered by Worldline include in-store and online commercial acquiring, highly secure payment transaction processing, and numerous digital services. In 2021, Worldline generated a proforma revenue close to EUR 4 billion.

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Keywords: cryptocurrency, digital currency, blockchain, stablecoin, payment industry
Categories: DeFi & Crypto & Web3
Companies: Worldline
Countries: World
This article is part of category

DeFi & Crypto & Web3


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