Ep 80 - Breaking Barriers in Global Payments: From Legal Frictions to Digital Rails

Episode 80 with M. Konrad Borowicz, Syed Musheer Ahmed and Monica Jasuja 🎧  

In this episode of Regulatory Ramblings, we explore two transformative conversations shaping the future of global payments. From Swift’s bold move into tokenized finance to the legal complexities of cross-border payment systems, this episode dives deep into the forces redefining financial infrastructure.

Segment 1: Is Swift Breaking the Wall Between Traditional Finance and DeFi?
Swift - the backbone of international finance - has announced initiatives to upgrade its existing rails while building new digital rails for tokenized assets. What does this mean for the convergence of TradFi and DeFi? Our guests unpack the implications of blockchain adoption by regulated institutions, the rise of stablecoins, and the shift from messaging to settlement. They also debate whether blockchain truly solves correspondent banking inefficiencies and how financial inclusion fits into this evolving landscape.

Segment 2: Extraterritorial Frictions on Cross-Border Payments Laws
Cross-border payments are not just a technological challenge - they are a legal and geopolitical puzzle. Dr. M. Konrad Borowicz discusses his recent paper presented at the European Central Bank’s Legal Research Program Seminar, which examines frictions arising from settlement finality, data protection, AML/CFT compliance, and governance. We explore models of FX interlinking - bilateral links, multilateral hubs, and direct access - and why none offer a perfect solution. The conversation spans regional payment blocs, sanctions as a driver of fragmentation, and the tension between AML transparency and data privacy under regimes like GDPR. Konrad also shares why instant payment systems may hold more promise than stablecoins for lawful, efficient cross-border transfers.

Key Themes:

• Swift’s blockchain-based settlement and tokenization strategy
• TradFi–DeFi convergence and the role of stablecoins
• Legal frictions in linking global payment infrastructures
• Regionalization vs. globalization in payment systems
• Sanctions, sovereignty, and the geopolitics of finance
• Data privacy vs. AML compliance in cross-border transactions
• The promise of instant payments for retail users

Syed Musheer Ahmed is a fintech leader with 18+ years in capital markets and virtual assets. He co-founded the Fintech Association of Hong Kong and leads FinStep Asia, driving innovation across Asia’s financial ecosystem.

Monica Jasuja is Chief Expansion & Innovation Officer at Emerging Payments Association Asia. With 20+ years in digital payments and product strategy, she has led initiatives across global markets to build scalable, consumer-focused solutions.

M. Konrad Borowicz is Assistant Professor at Tilburg Institute for Law, Technology and Society. His research focuses on payments regulation and financial law. Before academia, he practiced finance law in London and now publishes widely on cross-border payment systems.

The Regulatory Ramblings podcast is brought to you by The University of Hong Kong's Reg/Tech Lab (Building Better Financial Systems), HKU-SCF FinTech Academy, Asia Global Institute, and HKU-edX Professional Certificate in FinTech, with support from HKU Faculty of Law. The program is led by Douglas Arner and hosted by Ajay Shamdasani.

For more details about the authors and links, please visit: hkufintech.com/rr

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.