An essay arguing that blockchain protocols and traditional payment systems will coexist and complement each other rather than compete. The author, from the Stellar Development Foundation, advocates for building bridges between code-based coordination (open protocols) and committee-based coordination (legacy financial rails) to serve different use cases and global financial needs.
The article challenges the decade-long narrative that blockchain would disrupt and replace legacy financial institutions like Swift, ACH, and regional payment systems. Instead, it argues that new technologies typically evolve alongside older systems rather than obliterating them. The author distinguishes between two coordination approaches: committee-based (Swift, ACH, SEPA) which offers accountability and governance through negotiation, and code-based (open blockchain protocols) which provides speed, accessibility, and permissionless innovation. The piece contends that code-based systems are increasingly encoding properties traditionally associated with committee-based systems—accountability, governance, legal certainty, and even privacy—while maintaining permissionless access. Rather than viewing this as competition, the author frames it as convergence, where different rails serve different needs: traditional systems excel in domestic payments and institutional trust, while open protocols serve underserved corridors, volatile markets, and machine-speed transactions. The conclusion emphasizes that institutions engaging early with emerging coordination mechanisms will shape how bridging happens, and that the future belongs to those building connections rather than picking sides.
