Reply : The future of digital currencies

Reply, specialised in the design and implementation of solutions based on new digital media and communication channels, has launched a research project aimed at identifying and quantifying the benefits of adopting a cryptocurrency that takes advantage of the potential of the latest technologies.

The research, referred to as Cryptoeuro, is promoted by Reply in collaboration with the Blockchain & Distributed Ledger Working Group of the Digital Innovation Observatories of the Polytechnic University of Milan and the participation of the Associazione Italiana Istituti di Pagamento e di Moneta Elettronica (AIIP - Italian Association of Payment and Electronic Currency Institutes).

The goal is to identify and quantify the benefits to consumers, banks and payment sector operators, as well as to the national economy in general. Cryptocurrencies, of which Bitcoin is the most prominent, are based on the Blockchain technology, a decentralised system for registering transactions and ensuring their immutability over time, eliminating the current need for central parties to authorise the transactions.

In addition to generating greater efficiency in terms of time and potentially cost, compared to traditional payment methods, cryptocurrencies offer some distinctive advantages including the ability to natively manage protocol spending rules at the single transaction level, the so-called programmable coin, or the ability to make multiple transactions with a single payment.

Various institutional entities and leading players in the financial services and payments industry are also contributing to the research initiative, whose results are expected within six months. The research project is divided into 3 phases:

• identification of the key characteristics of the cryptoeuro, analysis of similar international cases, definition of the supporting Blockchain infrastructure;
• identification of possible applications and gathering of stakeholder input;
• estimation of benefits.

'Today, there is the possibility of a breakthrough in payment systems that can benefit everyone involved, first and foremost the consumers,' declared Maurizio Pimpinella, President of the AIIP. 'The involvement of different players can serve as an accelerator to this process. Developing a project that brings together the multidisciplinary expertise of the Polytechnic and the technical knowledge of leading operators in the sector is the most effective way to maximise the benefits offered by the new technologies'.