FinTech LIVE London 2024: Insights From Fireblocks

January 09, 2025

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Varun Paul, Senior Director and Business Lead at Fireblocks, explores the vital role of trust in the evolution of money at FinTech LIVE London 2024

Delivering an engaging keynote presentation at FinTech LIVE London Global Summit, Varun Paul, Senior Director and Business Lead at Fireblocks, shared insights on how fintechs, central banks and blockchain technology are shaping the future of payments.

The essence of trust in money

Opening the discussion with a quote from Yuval Noah Harari, Varun underlines money as “the most universal and most efficient system of mutual trust ever devised. It can bridge almost any cultural gap [...] allowing people who don't know each other to work together and trust each other to deliver a greater good”.

This foundation of trust, he explains, is what ensures the value and function of money, whether in the form of banknotes, digital payments or emerging cryptocurrencies.

Drawing from his 14 years of experience at the UK's central bank, Varun emphasises, “Trust is very hard-earned and very easily lost.”

The same principles apply across all forms of currency, including digital money, where stability, security and operational resilience are key to fostering user confidence.

Varun Paul, Senior Director and Business Lead at Fireblocks

Digital currencies: A new frontier for trust

In the dynamic realm of digital currencies, trust takes on new dimensions.

Varun discusses the proliferation of stablecoins, including successes like Tether and Circle's USD Coin (USDC), as well as the high-profile collapse of Terra Luna’s UST.

These examples underscores the critical role of robust reserve management to maintain the trust of token holders.

The Silicon Valley Bank crisis, which temporarily depegged USDC from its US dollar value, exemplified how fragile trust in digital money can be.

Varun notes, “but it's not only trust in the value of the currency that it's important with digital money.

“With a new technology like this, people need to be able to trust in the operation as well and data privacy is core to that.”

Referring to Facebook's Libra project, he highlights how fears over data misuse can derail even the most innovative projects.

Banks, with their history of creating money and compliance expertise, have a unique opportunity to address these challenges.

Tokenising deposits, for instance, allows banks to maintain their pivotal role while addressing consumer concerns around privacy and financial security.

Varun Paul at FinTech LIVE London 2024

Central banks and the evolution of money

Central bank digital currencies (CBDCs) are emerging as critical tools for modernising financial systems while preserving public trust.

Highlighting examples from around the globe, Varun demonstrates how different nations are tailoring their CBDC strategies to their unique economic and societal needs.

The Caribbean: Focused on improving the distribution of money to remote islands.
Nigeria: Aimed to counteract crypto use and informal economies while improving payment efficiency.
China and India: Pursued CBDCs to reduce reliance on private payment systems like WeChat Pay and Alipay.
Australia and Brazil: Prioritised future-proof innovation and blockchain interoperability to support digital economies.

These strategies reflect a delicate balance between fostering innovation and safeguarding public trust.

Varun proposes a layered blockchain approach, with central banks operating highly governed core infrastructures complemented by interoperable secondary layers managed by private institutions.

Bridging the gap: Technology and governance

In closing, Varun explores how advancements in blockchain and wallet technologies are paving the way for a more secure, efficient and user-centric financial system.

The concept of a "triangle of trust," integrating wallets, technology providers and user responsibility, offers a model for reducing operational and financial risks in digital payments.

The future, Varun argues, lies in giving consumers more choice—whether through tokenised deposits, stablecoins or CBDCs—while ensuring that these systems are interoperable, secure and governed responsibly.

Ending on a reflective note, Varun quotes Bluey, a children's TV character, who remarked, “Without trust, none of this would be possible.” They emphasise, “Our societies are built on trust and money is central to that.”

Varun Paul, Senior Director and Business Lead at Fireblocks