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Insights and Expertise

about bank failure as has happened in the commer- Project Agorá is an exciting development and is indicative
cial bank sector. of how multifaceted the digital payments world is. What
• Unified ledgers for seamless integration: By break- I’m really encouraged by is witnessing the growing
ing down silos and segregated ledgers, transactions institutional participation in such projects. This project,
can be enabled across different asset classes on a with firm commitments between the public and private
single platform, while tokenized deposits within the sectors, indicates that there is growing appetite for defi
existing system preserve the "singleness of money" explorations to solve old tradfi problems.
and add flexibility for banks. While central banks navigate the complexities of CBDCs,
• Enhanced security: Tokenized assets reside on se- the private sector, driven by fintech expertise, is arguably
cure, tamper-proof ledgers, reducing the risk of racing ahead in reinventing traditional payment methods
fraud and unauthorized access. Blockchain-based and rails. The success of some stablecoins like USDT is
transactions also guarantee full traceability so each proof of that. Now it’s the traditional payment rails for
party in the transaction can see where their money those assets to enable their use in cross-border payments
is at any time. There are also potential compliance that are ripe for reinvention.
cost reductions with shared infrastructure, as pro-
cesses like know-your-customer and anti-money Project Agora isn't just theory. It paves the way for a more
laundering checks could be streamlined. efficient, secure and user-friendly financial future. In
• Easier regulatory compliance: Tokenization will this dynamic environment, those adept at navigating
enable streamlined compliance, as compliance mea- technological advancements, regulatory frameworks and
sures are embedded within smart contracts. This customer demands will shape the future of finance. It's
not only automates adherence to regulations, but not merely a race; it's a digital transformation defining the
also creates auditable compliance trails, providing future of payments.
transparency in regulatory processes.

Edvards Margevics is co-partner at Concryt, a game-changer in finance
Interest in using defi to solve old tradfi problems is that brings reliability to every challenge, be it payments, technology or
growing risk management, https://concryt.io. Contact Edvards at linkedin.com/
in/edvards-margevics.

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