Fintech Central: Cryptocurrency and Blockchain



tonight we're going to talk about the wonderful world of crypto and blockchain there are a lot of really interesting companies out there that are utilizing the technology in many interesting ways and we have I think some of the top leaders up here tonight to talk about it so we'd love to have each panelists introduce themselves going down the line here and then we'll save some time at the end for Q&A so so please hold those but let's start with literally here on my right sure my name is Lulu the CFO 21 I'm some of you I think are already on the platform essentially what we are is we're a platform that allows you to click some buttons and earn some Bitcoin today and in a few months you can click some buttons you can earn our token which can be a long chain called a social token and the reason why we came up with this is because up until now it's been very hard to get digital currency you have to mine it which is really hard or you can sign up for coin based invite or in exchange but that also requires a bit of commitment whereas on 21 you can basically get a little bit of digital currency for doing tasks that you might do a otherwise which is primarily emails a simplest form of of tasks taking some surveys or doing other sorts of tasks that sort of take a minute or two of your time and so sort of the broader idea is that we're sort of a marketplace for a few minutes of your time if you will my name's Brad Garlin house I'm the CEO at ripple ripple is a blockchain technology company that sells technologies to banks to enable real-time settlement between banks we focus on cross-border payments we work with about I think we've publicly announced over 90 banks around the world ranging from Sachin there and Standard Chartered to smaller banks kind of around the world my name is Kathleen Brightman I'm the co-founder of the tezo's blockchain Tesla's is a new blockchain in the same vein as a theorem in Bitcoin one unique feature that we have is a non chain governance mechanism to facilitate upgrades of the protocol everyone my name is Adam white I'm the vice president and general manager of GD x GD x is an institutional grade exchange that's owned by coinbase coinbase in its simplest form is kind of the fidelity of cryptocurrency it's an easy place to buy sell and store digital currencies like Bitcoin ether and litecoin right now stuff I focus on on G Dax is really serving more of the Wall Street or institutional crowd so when look at kind of the crypto hedge funds that are beginning to stand up or their traditional kind of finance one point out players as they're looking to begin trading this digital currency we're trying to be the US based regulated compliant exchange that they do that on awesome so before we jump into the panel actually want to get a show of hands of folks in the room to see who has a strong understanding of the differences between a crypto currency and the blockchain itself awesome so I would like to start with having Lily just give a really quick framer on you know just the overall ecosystem and what those two things mean functionally sure so blockchain is distributed distributed database basically hosted on a network of arbitrary size of peer-to-peer nodes without sort of a centralizing a centralizing sort of authority or force right so that's sort of a technology going to be applied in a variety of different use cases cryptocurrency is probably the the dominant use case and there's obviously a lot of instances of it because we're to think about it as the cryptocurrency is sort of being the transaction type or sort of the the asset which is being traded back and forth which is obviously a very good initial fit because currency is something which is fungible liquid low transaction cost and that's a very good fit but you know now what we're seeing is we're seeing a number of different assets being digitized and sort of placed on a blockchain so for example supply chain and various actors and supply chain it's an organization or mechanism coordination mechanism for people in that ecosystem right or other folks are trying to take things that are typically securitized on Wall Street put them on a blockchain and make those sort of reduce transaction costs make them sort of more transparent and tradable what's kind of interesting as a blockchain enables you to take a number of assets which you didn't previously consider a currency and actually start to attach sort of currency like characteristics to them as we see file coin doing with data storage right and as we see with the number of folks that are taking real-world assets for them on blockchain and now you can actually sell fractional buy and sell in a very fast sort of cadence fractional assets like you've been real estate and some of the more traditional assets perfect and so I think it's very clear to everybody you know cryptocurrency like many other currencies is fantastic as a store of value or exchange but a lot of the innovation is happening at the blockchain level and Brad and Kathleen both of your businesses are really kind of innovating on the blockchain itself I would love to understand from you how yours is different and what you're aiming to solve with that so I'll start ripple takes an approach that early on I think it was contrarian in the Bitcoin world where the idea being that Bitcoin I don't think is gonna be a panacea for all transactions and you are seeing now a world where obviously there's lots of tokens to serve different use cases we focused on making sure the performance of XRP which is our digital asset is very very efficient for payments so in contrast to today a Bitcoin transaction on average is about four hours we complete a transaction three to four seconds from a throughput point of view or you know seeing 1,500 transactions per second compared to you know Bitcoin net but I haven't seen the latest data you know that is not to say and I'd be a little bit careful about that I am NOT I'm actually long Bitcoin I'm a believer I just don't think Bitcoin is going to solve all the transaction problems and some of the things that Lily talked about around secure it's just not that the nature of proof of work as a model to manage a blockchain is has its limitations as we've seen and I think you're gonna see specialized use cases of other blockchain technologies applied to specific customers that are better so tis this is a smart contract platform smart contracts are a way to deploy business logic in a decentralized fashion we think that offers some really cool and unique innovations when pushed on blockchain so Tesla says this extends this idea it also allows for the community to come to consensus on upgrades it would like to see instantiate into the blockchain and what's more it also facilitates a more seamless way of enabling these upgrades so right now if you want to add a feature to Bitcoin or aetherium you have to through this really arduous hard work process tezo's we think that upgrades to the protocol ought to be more passive to facilitate you know ease of use on the end user and so Brad you started to touch on this but based on the way mining works today there's a lot of talk about just speed of getting transactions done can you talk a little bit about where that is today and how we can get to a point where you're you know processing transactions up to speed a lot of applications need well I would argue that to answer your question at a literal basis like can you get from point A to point B with a proof-of-work model to truly have kind of the efficiency that I think you need at scale for payments securities for a lot of the use cases that I think people see as very big market opportunities I think there are some fundamental limitations around a proof-of-work model and it's the reason why ripple and you've seen others adopt a consensus-based solution that allows for a much more seamless scaling and you know I think we can debate I'm not saying proof of work is wrong under saying it doesn't solve it's not the panacea for all these different transactions got it well there are some interesting innovations in this space there is expected proof of work I think that Quinn and G is a particularly interesting implementation that would make proof of work more efficient I'm a little biased because Tess is launching with something called delegated proof of stake which by definition has people assuming the role of miners with their token holders so it's a more lightweight approach and inexpensive approach got it so I can no longer open my Twitter feed without reading about another ICO or get an email from another founder saying my job is quickly going away I'm curious to get all of your opinions on you know where we are in the ico market I think you know the challenge here is you can't put aside the legalities and I think the mistake that the I think some and the crypto blockchain world have done even looking backwards is governments aren't going away and governments do care about regulation governments do care about kyc e they do care about you know if you're issuing as security and frankly on the IC o—- thing that the thing I think entrepreneurs are forgetting is that the SEC regulates securities to protect investors and entrepreneurs and companies I think that there are going to be many many years ahead of class-action lawsuits going after companies that have done icos but you just can't put the legality question aside it's it's it is it hypothetically a fundamentally interesting way to put you out of a job sure hypothetically but we live in real worlds with real laws and I think that what I worry about is that the IC o—- market has created particularly around etherium a lot of interest and you guys to see China has taken a strong statement around I cos you've seen the US government take a lighter touch so far I would predict you're gonna see the US government take a heavier touch in the future and I think it will change the nature of the whole IC o—- conversation there's no question that there are going to be sort of legal confrontations in this area what I might point out is that it is sort of because of some of the unintended effects of those regulations over time which has really sort of cut off a great number of people from having access to capital right and which is you know not to say that the vast majority of ICO projects out there are really any good at all because essentially what's happening is you have a number of cth companies that are going out raising rounds from you know people contributing 10 or a million dollars and they probably still have the same quality profile as the seed stage companies that come through the more traditional route of going up and dil up and down Sand Hill Road right so there's no question that a number of those folks are not going to be successful and there's going to be a number of surprised people as well and the day just sort of the amount of money that's going in there but what I think is very interesting about it is you know no longer is it a requirement that if you want to start a company and you have a good idea you basically have to uproot yourself come to Silicon Valley spend a few months networking relying a little bit of luck as well as your own competence to raise a few million dollars the vast majority of which is going to go into your rent and salaries to go support that right and so there's also something with that model which could potentially be improved upon and icos are sort of I would say sorters testing the testing the waters there and there will sort of be a middle ground which is found yeah I mean I SEOs are not like a form of alchemy they're not gonna make a bad idea into a good one and I think that that's kind of what most of the fervor has been around is like people will see this like genuinely insipid idea that gets a lot of funding because people on the internet say you know it's going to be worth the X amount in the future there's definitely a toxic element around the spirit of some of these icos but on the more encouraging note I definitely seem like the conversations get more sophisticated even in the short period of time this has been a phenomenon it used to be the case that like all you needed was a white paper now people are like demanding code is a separate thing you know issue but I think that I think the audience is getting more sophisticated and this like meme like oh well I can't really quite raise the series B I'm gonna go and do an IC o—- instead with what I call cirque du soleil coins because they they have to contort themselves it's like making a token make sense in their model I think there's been a lot of like positive encouragement just in the in the short interim time that this has been this odd press phenomenon and I'm happy to see that like you know folks with the SEC are taking more of a wait-and-see approach and trying to you know first and foremost protect consumers and but also not like punishing the innovators in this space because it truly is it an interesting way to like deploy capital across the world as lily mentioned and a dimension yeah it's it's fascinating because anytime you see an industry that's you know breaking the law they usually comes out a couple of winners in that space and they're usually the folks that work with the regulator and you know I think back to marketplace lending way back when a lot of folks were getting pinged by the SEC and then end up getting shut down by the SEC and a number of other folks actually proactively shut down and said we will work with you and help you know define what this industry is going to be and I think some of those folks ended up coming out on top and so from our perspective you know we here move fast and break things and in fin tech and are very scared by that as investors so you know our our advice is to always you know work with the regulator every step of the way and hopefully you come out on top so you sorted mentioned some interesting applications at the blockchain you know is really kind of purpose-built for I'm curious you know what are some applications that that you have all seen as I've laid where you know something really does fit this this technology bread I you know I'm biased ripple has very much focused on understanding a specific you spit case a specific customer and that is cross-border payments one hundred fifty five trillion dollars that flows cross-border every year at the cost of which is measured in kind of 100 basis points are talking over a trillion dollars of cost globally to manage cross-border payments today blockchain technologies are a perfect application for managing that again we manage that between banks we feel like the bank serves an important regulatory element consist with Michael is saying we have kind of from the get-go once a regulator understands what ripples doing and we're not circumventing regulatory frameworks we're not circumventing kyc requirements no your customer or AML into money laundering that tends to serve us well but my critique and observation and partly because hyper Ledger's not represented here I'll pick on hyper ledger if you go to the hyper ledger Wikipedia page it talks about a hundred and forty three different use cases for hyper ledger if you have a hundred and forty three different use cases you might as well have zero you have to understand a customer you have to understand the problem you're solving and if you understand the customer I understand the problem you can actually deploy solutions towards that you know I think it took ripple awhile ripples been around for about five years about three years ago we decided really focus on the bank solution and you know it has taken a while to get some momentum it took a year to sign our first customer now you know we passed 90 plus customers so I think the observation I'd make to anyone thinking about this space is there's a lot of amazing use cases for blockchain pick one yeah I think lowering the ticket price for financial services is a big use case and it's something that can't be ignored especially given that you know the Bitcoin way paper talks about displacing the banks so on and so forth I think there's also something really interesting to be said for like online content owning their information in their data across different platforms for example that's a that's a cool one that I think goes a little bit under noticed I'll take a slip I'll take a slightly different perspective I think one of the things that I find really interesting that that not just one blockchain but actually multiple block chains can do is this idea of a decentralized or trustless escrow so you think about Bitcoin there's something called n time lock which basically says I'm going to put my Bitcoin at this address and under these circumstances then it's gonna be released this is not too different than what Tasos does one of the first things we saw happen just earlier this week or last week was we saw what's called a non Shana Tomic swap so effectively two different block chains that are completely separate traded assets between one another and why I think this is really unique is coming from an exchange perspective what I'm constantly looking at is how are people exchanging or transferring one asset to another so when you start having these unique applications of blockchain technology that you kind of have a meta blockchain not just one that operates independently in an asylum but now you have multiple block chains that can talk to one another and you can move seamlessly between them I think that's what's gonna get us to what the mission of coin based is just to take a step back is to help create an open financial system for the world so we are not we are agnostic to which digital asset that happens with and personally I think it's going to happen through a combination of many of them but the way in which you can do that as I think you fast forward 5 10 15 years people don't know that they're using a digital currency to me it's it's like the same way I have no idea how SMTP works the protocol for email I just know I punch in an email address and it goes to someone else and it's kind of routed and taken care of I think digital currencies will get there one day and that typically payments find the path of least friction and that just like the same way I don't understand my credit card works I just know it moves value from one person to another I think digital currency will get us there too and things like on chain atomic swaps are gonna help facilitate that I think they're amazing so I think that blockchain could be quite interesting for the aggregation of health data and so you know typically when you think about personal identifying information or sort of private information like that there's a bit of a tension between this information being private but then also this information being aggregated so you can research on it and sort of serve the greater good right it's a constant tension that you have in HIPAA standards and then what you know University research on various data sets but you can potentially enable the blockchain is you can basically you know have as private and personal information like health data on a blockchain and selectively allowed to be aggregated so that you know for example genomics data right like I recently went and got one of those one of those blood tests and I was really surprised to find that they actually didn't have very much information on like this sort of borderline mutation that I have right and I thought how is this possible that this is a 200-dollar test yet people don't know anything about it right and I think you know one of those reasons because there isn't sort of a private and also incentivized way for people to actually go and share that data and potentially it's something that you can sort of use watching for to overcome privacy in a great environment only one one example yeah Adam would love to go back to you mentioned kind of an Opel open financial you know ecosystem you know recently China came cracking down and said they're not going to allow icos in the region anymore which was really kind of the big first piece of you know regulatory action since the bitlicense in New York a few years ago I'm curious to get your perspective first on that ruling and then also what does good financial regulation look like for this market moving forward but you know what are some things that you would like to see and and perhaps some things that you feel like you know regulators maybe out of not touch yeah between between the PBOC and Jamie Dimon it's been a tough couple support that's my next question yeah yeah I don't know I think at the end of the day what makes digital currencies or open networks kind of like Bitcoin so powerful is that no one government or no one jurisdiction can stop it what happened in China personally I don't I don't think is that big of a surprise I've been at coinbase for about four years and I started back in 2013 and back then we kind of saw a lot of interest and we saw China kind of crack down and and we saw this like kind of a pullback and then we saw it open back up so it's it's kind of inconsistent it shouldn't be that surprising because you look at the internet that China has it's already kind of this version of a permissioned Internet right so this idea of a permissioned digital currency is not out of the realm of possibility I think what I like to see more of is you're gonna start having in my opinion I think and now I'm thinking a bit progressively 810 years out you're actually gonna have countries starting to compete with one another to be kind of incubators or the the right place to attract this type of talent and technology so it's really interesting if you go to Europe there's different like crypto valleys there's different like kind of Bitcoin or blockchain ecosystems that are developing in different parts of the world based on kind of more intelligent innovative light touch regulation I think there's a big risk that if the u.s. follows suit to China or others do comparing digital currency to the Internet it is quite a stretch but I don't think it's that far off I do think we're in like 1992-1993 terms right now these are the early endings these are like the very first days of this technology the risk is what China does that other countries follow suit and you kind of lock down this technology that could be really powerful so they into the question michael ballack what is good innovation or good regulation look like I think the u.s. is actually a pretty good indicator of this you find a balance between the SEC coming out and saying look the doubt token was obviously a security and we're gonna put out abroad you know across bough warning if others do that there will be consequences and don't make that happen but they didn't outright ban icos we saw the same thing happen for the state of New York the state of New York said look we cannot allow digital currency exchanges to just operate freely we saw it happen in Japan with Mount 700 million dollars of bitcoins stolen because of poor security standards and possibly fraud so New York's come out with a bit license where they said if you want to operate digital currency for our state citizens you have to get this license it's a tough license to get it took us years but I think countries like the u.s. are finding this balance between how do we let this technology flourish but the same time protect our citizens from bad actors covered at all they're great so you mentioned Jamie Dimon and I think we couldn't have a panel and cooked on blockchain without talking about some of these statements and I'm you know I would love to get your guys into not just a statement but but the way of thinking he said quote it's creative something out of nothing that to me is worth nothing it will end badly and he went on to say that you know people will be put in jail and the government's going to crack down on everybody involved how you respond to that kind of bad that frame of thinking today yeah i curious to get your point of view somewhat sarcastically I'll start with you know the first thing that somebody said to me about this is Jamie Dimon is trying to talk down the price of Bitcoin so we can start buying you know like I think that today JP Morgan sits at the top of the financial ecosystem they make a technical term of a ton of money around payments so you know I like it's not that surprising if I were a shareholder in JP Morgan I'd be glad the Jamie Dimon is out there saying this you know there's also a cover of Newsweek magazine in 1996 that said the Internet is overhyped you know sometimes legacy players miss evolutions in the marketplace and maybe the last thing I'll say is look ripple knows very specifically and I think many people in this room probably do JP Morgan is absolutely investing in blockchain there's no question about that so for him to come out and say that you know it's all fake and people are you know gonna be killed and you know my favorite and almost one of the Kathleen I think she said earlier was like this idea that you can he said it's gonna close Bitcoin is gonna close what does that mean I mean you can't even anyway so I think maybe in a few years he might look more like the CEO of Blockbuster when Netflix was emerging I thought it was well that'll be the title of the blog Fox yeah I mean it was well timed with the announcement coming out of China it was very very well timed and I I didn't take it very seriously because you know for example in March they announced a partnership with Z cash they are leader in the enterprise aetherium Alliance they're doing a lot of stuff with blockchain so they obviously think blockchain is good and he only specifically talked about Bitcoin so you know and then today I think the CEO of Morgan Stanley came out and and actually spoke well with Bitcoin and cryptocurrency so I'm I didn't take it very seriously we're all just kind of talking your own book right so I mean I'm pretty sure Satoshi Nakamoto was asked for comments he would reciprocate the sentiments yeah I mean I've all the respect to the world for Jamie Dimon but so when it at coin they said it's akin to asking the Postmaster General what he or she thought about email back in the like the mid-90s it's the same point Brad said that said I think we're certainly I mean no one wants to call the you know peak hype Peak bubble if you do look back at the price of Bitcoin you can look at this for many digital currencies but Bitcoin specifically we see these fractals right so we see rapid growth then you see a recovery you kind of see a plateau and kind of say linear for a while and then you have another catalyst and you see another hyper growth period this has happened three for I think five times notably in Bitcoin every time after you see one of these kind of rapid growth sin the correction the timeline to the next one goes a little bit longer and the next run ups a little bit less severe so I think we've seen this before we're gonna continue to see it to happen by no means am i calling the top and that you know we're at the late stages or early stages nobody knows I think what I find fascinating is you have we have this magic moment when a lot of people first get digital currency first get Bitcoin at least for coinbase and it's either two things it's when they buy a bit of Bitcoin and actually see the price change and they go I lost five dollars I made five dollars it's something happens it becomes real and on the exchange side it's when they're seeing the trades happen and they go well who's on the other side of that trade isn't someone saying what the price is and we go no we we are we are not a counterparty we are just the marketplace the meeting room where everyone comes to trade and Olson it clicks and it goes wait there's no government or bank or business behind setting the price these are what willing buyers and sellers will trade for it I think what Jamie Dimon says is it's somewhat factually true that look there is nothing behind it digital currency just like monies that the purest form in my opinion of network effects it only works because other people also use it as well but certainly we're gonna see the price recover at some point Jamie Dimon is gonna pack and Pat himself in the back and then three years later we're gonna see digital currency take off again for whatever reason and we'll be right back here awesome so we have one last question and then we'll open up to the audience I'm not sure if we have a mic that that'll go around but you guys are all incredibly successful operators and there's a lot of really interesting stuff going on in crypto FinTech more broadly and other categories I'm curious to get your point of view if you were to stop what you were doing today and go start a company what would it be Lilly let's let's start with you what I think would be interesting to see happen is if you start to sort of see the merging of the crypto world with more traditional traditional Wall Street Wall Street and so I sort of looked forward to the moment when a struggling public company right I was basically delisted and then REI CEO as a as a tokenized Network and I think that maybe in a few years you know a bunch of the sort of LVO shops out there might actually take that approach and put a couple hundred million dollars to buying a distressed asset that has millions of users lots of partners that would benefit greatly from having a tokenize network that'd be interesting can give two answers please the first one I I think there is a lot of interesting stuff going on in institutional digital assets I think Adams right that it's very difficult for anybody to predict where the markets are going I think one thing has been fascinating for ripple to see because we hold a lot of XRP we see institutions coming to us and wanting to buy block purchases and so you know look it's a hundred and I know what the numbers are today 150 billion dollar market today overall and I think the big hasn't begun to come in and I think you're starting to see big institutions measured in you know tens of billions and hundreds of billions of dollars take a serious interest and so I think the kind of institutional funds and I know there's probably people in this room they're looking at digital asset funds there's you know some notable ones that already been created I think it's an interesting space but if I weren't doing blockchain I'd do something in genomics not just as Lilly was talking about it I'm probably not gonna win many feminists points with this but what I've learned during the course of my time at is this is that I really enjoy working with my husband he's a really talented engineer and he's a statistician by training one area that we think is really cool and interesting is probabilistic programming so I'd like to do a company with him again and remain on the operation side both he does his engineering thing and just keep on spending way too much time together I'd flip to the other side of the table I'd go work in regulation I think it's it's the the biggest risk digital currency not succeeding it kind of sounds contrary to the stuff I just said but I think by no means is like China outlying digital currency can affect the long-term success of this technology in the near term absolutely and that could be a systemic risk spend a bit of time in DC there's we do some education generally just serving as a resource to law enforcement and policy makers and there's just still a lot of lack of education just people not understanding how digital currency works what it is there's great nonprofit groups out there like coin Center that are doing some good work if I could quit tomorrow I'd probably go do something in that space awesome questions from the crowd got it so the question is correct me if I'm wrong how do you guys think about Forks moving forward and you're essentially capital going into two different currencies right how it affects the capitalization and the integrity of the coin I'll just say it's something quickly Fredersen co-founder of coin based put out a medium post on forking just a couple weeks ago and said that net it's one of the best things that digital currency has going for it is that anyone can take the protocol the software it's open source and say I don't like what it represents or the direction it's headed and I'm gonna take it this direction and people can up and vote with their feet and go follow it the only way it has values because the open market values such what I find fascinating is that almost every time we have a fork net net the sum of the parts is greater than the whole before the fork right so this happen with Bitcoin it's happened with aetherium and aetherium classic it's a really interesting phenomenon I think part of that's just because one people are hedging their bets right is Bitcoin or Bitcoin Bitcoin core Bitcoin cash which one's the the real version or which one's gonna win people don't know and two if you look at the total market cap of all digital currency it's about a hundred and fifty billion I think that's a fraction of the market cap of Apple and if if you don't believe the digital currency is gonna have a far more profound impact than an apple and I would I'd be surprised so part of this is I just think we're still very early endings very small and it's still a minut amount of capital all things considered I may just answer part of that question I think the integrity part is really important you know I think as companies increasingly have real customers and are solving a real problem at scale the enterprise's don't adopt things that are not stable you know when you have banks saying this is you know the for ripple when you have banks saying hey I'm making a bet and it's not a simple hey let's just you know light up a Salesforce instance and you know for 20 bucks a month or whatever the pricing is yeah this is the stability matters for enterprise-grade solutions so that business a position paper was published in 2014 at a time when people were talking about Bitcoin is you know powered by math or backed by math which I always thought was kind of funny because you can't trade in like a Bitcoin for a unit of math like it doesn't really make any sense but any case there is like this fad that there is like this algorithmic like Platonic ideal that all these digital current Bowl cryptocurrencies followed and what we've seen in fact is that there's quite a bit of politics behind all of this and oh there are quite a lot of game theoretic tensions between the role of miners the role evaluators in a network and the token holders as end-users you know Tessa has fundamentally thinks that things that are rather non-controversial and a net good to the community as represented by their interest token holders all should be a passive upgrade and things that are more contentious like you know chocolate or vanilla like we need to determine which is better for us to like go forward this blockchain ought to be you know represented through something like more revolutionary like a hard fork so our whole thesis is that like these things are fundamentally driven by human politics and there's actually much softer side to cryptocurrencies than we were first willing to concede and it's best to just give a formal formal forum for these types of issues to be sussed out through an entree and governance mechanism rather than just hope that like the right people who like signal with their Twitter handles you know get the most the most cloud from Chinese miners so any other questions so so thanks I think the question was you know which currency is going to have widespread adoption ie what should I buy when we leave here for a consumer use case thank you correct and then and what is going to be that you know the one for the consumer that you can use at the point of sale today when you're going out shopping in stores which I actually think is that you know a really interesting question and one that can actually happen and why and how glad you want to start you know I consistent with some things I said earlier you know ripple I think years ago took kind of a contrarian approach which was where a lot of people focused on consumer use cases we took a much more enterprise infrastructure approach the question presumes there's something wrong with Fiat and in some countries there is something wrong with Fiat I think that's a long in the United States I think the dollar works pretty well I think we're far from that world where I'm going to you know the X if I can take another quick poll you started with one maybe how many people here have actually spent Bitcoin to buy a good of some kind a handful it's not easy to do there's not a lot of you know some people sites that used to list and it will accept Bitcoin of taking that off and I think it's really unless you're really solving a problem and that problem isn't Silk Road or you know related that's its own use case I'm not saying this is it anyway I think it's a long time before we see the by selling your Bitcoin at a point-of-sale system but I might one of my add is so if your if your question is more generally about consumer sort of use cases for digital currency I would say that at least here in the US buying coffee and other sort of you know bread you know bread at the bakery or something like that I don't know that that's really a problem that needs to be solved right what I think digital currency is potentially very good for is for sort of digital consumer transactions right which are inherently borderless are inherently sort of not at the point of sale which could be between you and multiple parties at once and those sort of sort of payments use cases are actually sort of very high friction and not very well solved today so I think that's probably where you're going to see more applications of digital currency and you know particularly as as you know peer-to-peer transactions become borderless and and start to take very different forms that's where sort of flexibility of digital currency is gonna be pretty powerful any other questions do we think the card companies Visa MasterCard etc are going to become obsolete in the future as the question I mean I think MX is already kind of obsolete just looking at some of their decisions I like Visa MasterCard like I can't exactly speak to speak to their futures but I think like yeah there's definitely there's definitely a pull towards like lower transaction fees and things like this so I think there's a Silicon Valley I've been in Silicon Valley's doing this stuff for twenty years and it's kind of a common refrain that you know you always overestimate what's gonna happen in five years and underestimates gonna happen in ten years look I think in the next five to ten years there's very little that happens to decent MasterCard on the other hand if you think about fundamentally what blockchain technologies are enabling are two parties to transact without a central counterparty who are the biggest central counterparties on the planet Visa and MasterCard make that list securities settlement that you know a number of those players so I don't think it necessarily makes them go away I use my Amex you know I think Amex is still growing I'm hundred sure about that I don't think it'd go away anytime soon but I do think they will have to evolve and adapt and change and if they don't I think there is risk but yeah you were seeing all those companies kind of invest and participate in experimentation right now I mean you don't really see much beyond experimentation but you know I think they're looking at it for sure well we'll do one last question from the crowd here so the question was effectively how do we move the store of value today which is in an effectively fiat currency into crypto without hyperinflation did I get it okay from an exchange perspective right this is where I think coin Basin gix trying to come in which is create a really simple and safe product that anyone can get access to because the idea of anak hyperinflation is just that the buy demand far out seeds the supply right so if you have a whole bunch of new capital entering the space and it's all trying to move from dollars in gold bars and barrels of oil and futures on other commodities into what I think is very very likely gonna be a new asset class three five ten years down the road you need to have kind of a marketplace that can absorb that type of capital I don't think we're seeing that right now that's one of the reasons why we've seen a 10x increase in Bitcoin over the the last couple years I do think as we see more kind of institutional grade exchanges come online as I think we start to see the ability to short right now you can only go long Bitcoin there's no kind of overnight repo swaps where you can borrow in short digital currency you have a lot of this upward by demand I think is the infrastructure starts to to really come up another level and I think we will see a path that allow that capital to come in without over inflating the price good awesome well thank you all for being here tonight please join us for drinks and networking after yeah give a round of applause a panel

One thought on “Fintech Central: Cryptocurrency and Blockchain”

  1. TokenGo's own blockbuster should provide sufficient speed for financial transactions. Well, that paid attention to the API. It will be easy enough to integrate with mobile and web applications.https://tokengoplatform.com

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