A payments system, in the context of digital assets, is an infrastructure that facilitates the transfer of value using cryptocurrencies or blockchain-based tokens. This system enables users to send and receive digital funds, often with features such as faster settlement, lower transaction costs, and increased transparency compared to traditional financial systems. It includes the protocols, networks, and applications that support these transfers. The efficiency and security of such systems are paramount for broad adoption.
Context
The evolution of payments systems using digital assets is a key discussion point in global finance, particularly regarding cross-border transactions and financial inclusion. Debates often concern scalability limitations of current blockchain networks and the regulatory challenges associated with decentralized payment rails. Future developments will likely involve advancements in layer-2 solutions, interoperability protocols, and central bank digital currencies aimed at enhancing payment efficiency and security.
The new federal stablecoin law mandates full reserve backing and public monthly attestations, fundamentally recasting issuance as a federally regulated payments activity.
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