Permissionless blockchains for financial services

Bitcoin, Fiat & Rock'n'Roll

Can permissionless blockchains serve as financial market infrastructure?

In this episode of Bitcoin, Fiat & Rock’n’Roll, hosts Alexander Bechtel and Stefan Grasmann welcome back Professor Fabian Schär of the University of Basel to discuss one of the most pressing and complex questions in financial technology today: Can permissionless blockchains serve as the foundational infrastructure for future financial markets?

Professor Schär—renowned for his work at the intersection of finance, economics, and distributed ledger technology—recently authored a comprehensive report for the European Commission titled Enhancing Financial Services with Permissionless Blockchains. The conversation builds on that report, exploring how public, decentralized platforms might offer a neutral, composable, and resilient alternative to the fragmented and institutionally controlled systems we rely on today.

The episode unpacks key concepts such as composability, atomicity, and the importance of governance in blockchain ecosystems. It also critically examines common misconceptions—like the notion that blockchain’s value lies primarily in programmability or fractionalization—and instead focuses on the unique governance and trust properties that permissionless platforms can offer.

Together, the trio explores the shifting landscape of blockchain adoption by financial institutions, the growing interest from central banks in EVM-compatible infrastructure, and the challenges of privacy, scalability, and validator neutrality. Professor Schär does not shy away from the risks, including the potential for centralization and governance capture—even on platforms that start out open.

Whether you’re a policy maker, financial professional, or blockchain researcher, this episode offers deep insights into the technical, regulatory, and philosophical questions surrounding the digital future of finance.

Fabian’s paper “Enhancing financial services with permissionless blockchains”

Coinbase Paper on permissionless blockchains

Episode 175 with Fabian on DeFi

Bitcoin, Fiat & Rock'n'Roll Website

Bitcoin, Fiat & Rock'n'Roll Telegram Channel

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1. Intro (00:00:00)

2. Introduction Fabian (00:01:16)

3. A momentum for permissionless platforms? (00:04:05)

4. What is permissionless vs. permissioned blockchain? (00:05:21)

5. Why is permissionless infrastructure better? (00:10:18)

6. What do public blockchains bring to the market, that is not achievable by existing infrastructure? (00:18:12)

7. Atomic swaps (00:25:58)

8. Where do we stand with moving markets onto blockchains? (00:40:52)

9. Open validator set (00:43:55)

10. The reaction of the European Commission to Fabian's paper (00:47:56)

11. Wrap-up (00:49:04)