The impact of SEPA instant remittances on the European Bitcoin trading market

Not long ago, the European Central Bank announced that all of Europe will support instant payments by November 2017. In order to make this idea a reality, the Euro Retail Payments Association will work with the European Payments Council to carry out an instant payment enablement plan in Europe. This announcement will also be good news for Bitcoin exchanges in the European market.

Launch of SEPA instant remittances across Europe

The task will not be easy for either the European Retail Payments Association or the European Payments Council, although much of the ground is already in place to enable remittances from the Single European Payments Area. By now most people will be aware that the Single Euro Payments Area allows eligible countries to conduct wire transfers, which are faster than traditional bank transfers.

Instant remittance will be a big challenge because it is a completely opposite model compared to the universal banking system we are familiar with. However, some people question how money can always circulate freely, which is rarely the case in real society. It takes at least one business day to transfer funds from Bank A to Bank B, which is not "free circulation".

It is surprising to see the ECB admit that something needs to change. Not only is the SEPA's instant payments good for consumers, who can send money to friends or family more quickly, but it also presents opportunities for retailers.

Yves Mersch, Member of the ECB Executive Board and Chairman of the European Retail Payments Association, said:

“I am delighted that the industry is working together to make instant payments a reality, bringing benefits to consumers and merchants alike. It is important to take a pan-European approach.”

In the European e-commerce market, there are many retailers that accept electronic instant transfers. However, these transfers take at least a full business day to complete, and if the weekend is approaching, this will increase the time it takes to load the goods. With the widespread deployment of the single euro payment area, retailers will get their goods faster, and consumers will have the confidence that the goods will be delivered on time (this also depends on the courier).

What makes this proposal interesting is how banks transfer money to each other, even during office hours or on weekends, and the problem will be settled instantly. This is a completely different financial ecosystem for consumers and retailers alike. Paying bills on weekends will also result in instant payment, regardless of whether the bank is open or not.

Coming up with a watertight plan for this to work will take some time. The European Retail Payments Association and the European Payments Council have until November 2016 to create a feasibility plan, with the goal of implementing a solution by November 2017.

While this proposal is somewhat novel, it will only serve as the basis for future innovative payment methods. The ECB is well aware that mobile payments are becoming increasingly popular. In addition, this plan will also take into account the future of private face-to-face value transfers.

Author's note: The ECB press release states that this scheme is voluntary. However, all payment media offering euro instant payments based on credit transfers in the SEPA must adhere to the guidelines without exception.

Will Instant Withdrawals and Deposits Be Available on All European Bitcoin Exchanges?

If this proposal is implemented in November 2017, it will also have an impact on the European Bitcoin trading market. For buying and selling Bitcoin, it will be much faster to convert Bitcoin to Euros. Compared with now, this will make buying and selling Bitcoin fairer, simpler and faster.

However, it still depends on whether the SEPA enables instant payments. Even if the consumer's bank transfer is processed instantly, it does not mean that the intermediary bank can transfer the money instantly. The behavior of all banks in the SEPA is voluntary, so it is not certain how many banks will use instant payments in the near future.

We often hear consumers complain about how long it takes to make cryptocurrency purchases in the EU. Credit cards have barely been used as a payment method due to high fraud and chargeback rates. Bank transfers are relatively quick in the Single Euro Payments Area, but a one-business-day wait is too long for most people.

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Original article: https://news.bitcoin.com/impact-instant-sepa-transfers-european-bitcoin-exchanges/
Author: JP Buntinx
Translator: Wang Er
BTC address: 16enj2bapYdzPfa2DWSVaT1g95MCXg2hHt
Editor: printemps
Source (translation): Babbitt Information (http://www.8btc.com/nexuslab-blockchain)