Programmable Money
Programmable money refers to digital currency that has built-in logic, allowing it to execute specific functions based on predefined rules. It enables automated payments, conditional transfers, and advanced financial workflows without manual intervention. Programmable money is commonly used in smart contracts, central bank digital currencies (CBDCs), and DeFi applications. Programmable money is intrinsic to a number of evolving areas in fintech, from Smart Contracts, to Digital Currencies and Central Bank Digital Currencies (CBDC).
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
