In a world where the digital revolution is transforming industries, cross-border payments have experienced significant change. This topic was explored in a recent episode of The Connector Podcast, featuring Petter Sandgren, CEO of Centiglobe, who shared his insights on the subject.
Sandgren has two decades of experience with SEB before joining Centiglobe. He discussed his realization of the potential of real-time money movement, a concept that is reshaping the cross-border payment sector. As instantaneous transactions become more common, understanding the technology behind these rapid transfers is essential.
One key aspect Sandgren elaborated on is Centiglobe's role in messaging and value transfer. He explained how value can be moved instantly between banks across time zones, addressing complexities and breaking down traditional barriers in cross-border transactions.
A central theme in the conversation was the concept of "tokenized deposits." Sandgren clarified this term, explaining its importance in Centiglobe's operations. Tokenization, according to Sandgren, requires a high level of trust, robust risk management, and effective liquidity control. Centiglobe employs security agents to manage assets and minimize risk, adding a layer of security to the tokenization process.
Sandgren also discussed the potential use of government bonds as collateral. This innovative approach could further reduce risk and enhance the efficiency of tokenization. However, he acknowledged that this idea is still in its early stages, indicating its potential for future development.
He shared a compelling use case in cross-border factoring, demonstrating how Centiglobe's technology can significantly reduce transaction time, allowing sellers to receive payments instantly. This example illustrated how the company's technology can deliver tangible benefits to businesses.
Looking ahead, Sandgren envisions a multipolar world where different payment networks coexist. He believes that Centiglobe can play a vital role in creating interoperability among these networks. This vision aligns with the growing trend in the fintech industry toward collaboration and integration.
The podcast episode provided valuable insights into the world of cross-border payments, with Sandgren offering a new perspective on the industry. The discussion highlighted the role of emerging technologies like distributed ledger technology (DLT) and tokenized deposits, as well as the future of banking and how companies like Centiglobe are contributing to a transformation in the sector.
As we progress, it will be intriguing to see how these innovations continue to challenge traditional banking and shape the future of cross-border payments. The insights shared by Sandgren certainly suggest a promising outlook.
Listen to the podcast here.