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

Relai*: Buy Bitcoin with Relai – you can do a one-time purchase or savings plan: Click here. Use the referral code "ROCK" to reduce transaction fees by 0.1% while supporting Bitcoin, Fiat & Rock'n'Roll.

Value4Value Podcast Streaming: Support our podcast by listening to our episodes on the Fountain Podcast App. This way, if you wish, you can support us "Value4Value" while listening to the podcast. You can find us on the Fountain Podcast App here: Click here

Digital Euro Conference Partnership: BFRR partners with the Digital Euro Conference 2025 taking place on March 27 in Frankfurt. DEC25 brings together leading voices shaping the financial landscape, covering topics around retail and wholesale CBDCs, stablecoins, and tokenized money in general. As an official event partner, BFRR gives away one free ticket for physical participation in Frankfurt. If you are interested, please write us an email to [email protected] by January 31st. If you are not the “lucky winner”, you get 20% off the ticket prices with the code “BFRR20”. To buy your ticket go to the official website Click here and insert the code “BFRR20”.

Disclaimer: The content of this podcast reflects the private opinions of the hosts, serves exclusively for general information purposes and does not constitute investment advice. Always remember: Do your own research - inform yourself before making any investment decisions, such as buying Bitcoin. First try to understand what Bitcoin is and how to store it. This podcast does not provide financial advice. Note that the co-hosts might be invested in crypto assets. Read more on our website: Click here

All links marked with "*" are affiliate links. If you use these links for purchase, the podcast receives a small share of the revenue without any additional costs to you. On the contrary, affiliate links often include discount promotions, so you can even save money. We would appreciate it if you use these links to support us. Thank you very much!