Crypto - The Latest Global Crypto Trends What You Need To Know

foreign [Music] and really my passion and my focus in life is the future of money especially on cryptocurrencies and today my goal is very very simple I want to share with you all some of the latest Global developments that we are seeing and hopefully Empower you with this information and then let you make your own decision on what the impact could be not all the future of Finance but on the future of money not only for yourselves but also for the various organizations you're involved in but before I start I want to give this warning that I give to all the conferences around the world if anybody today next week or anywhere in the crypto space tells you they're an expert in crypto you see a door there and you run away can tell you I spent 24 7 of my time in this space and I tell you absolutely no idea where the space will be one month from now especially after the week that we just had because obviously the space Works in dog years a week in the space is like seven weeks in a normal world and what a week we just had and this is why today I'm just going to focus on these five developments that's it nothing more nothing less and we're going to discuss them and what the impact could be first one the big elephant in the room the Fallout X make no mistake until these events the last couple weeks we were having gradual entry of institutional players in the space you know there was a lot of very positive drivers why this was happening well for many of them let's face it crypto represented a new source of Revenue like many of the speakers you just but also we had a lot of demand from existing clients not only from Sovereign wealth funds but also corporates other other players in the space and the industry was becoming more institutionalized we're starting still out of the big crypto firms get their sock One stock twos big for Audits and other kind of controls they're putting in place regulatory clarity as a lawyer I love that today according to Cambridge University only five percent of regulators do not have a team working on crypto even elements like tax nobody likes to talk about that but very important we're starting to get some advances into space even topics like ESG especially following the merge of ethereum a couple weeks ago we're becoming a bit more easy for institutional Capital pensions and Sovereign at least explore the space while remaining through some of the values they have in place but then last week happened and make no make no mistake this will have an impact if some of the allegations are are alleged now are true expect regulatory enforcement arrests but also the the process of a chapter 11 will go on for many years if Lehman Brothers took over a decade I can guarantee FTX is more complicated increased regulator activity I've been in the crypto space now since 2013 and we have seen all the different cycles of crypto regulations coming in we're definitely going to see disconnect catalyze and accelerate the regulatory enforcement activity in the space and unfortunately Contagion some of the use of saw the news today of other players starting to fall this is to be expected and unfortunately the worst may not be there but the worst is on a personal level for all of you many of us who have been the community for many years have had the I told you so what's happening that Bitcoin thing you're looking at unfortunately we're going to continue getting that and those friends who haven't reached out to you in a couple months are probably going to reach out to you again but the good news is there's a lot of positive developments going on those players who spent the time the energy and the money to become Best in Class be reputable hopefully should benefit we will have ironically some of the good things that we've seen in the centralized space governance transparency processes actually coming into crypto space as well more reporting more transparency but one thing I can guarantee you the era of kids running the show we're being in a short in t-shirt is seen as a cool thing hopefully will come to an end and what this means is I can tell you and I know many of you in the room who've been in this space for many years we've faced many challenges in the past as an industry but we have always always come up stronger and I guarantee this one this time will be the case as well I'll give you some examples defy the world is centralized Finance actually the delivery of financial services with no Financial intermedaries the space is growing very quickly literally from exchanges to Landing per barring even defy insurance now widely available face is now around 50 billion dollars yes it was almost 200 billion dollars you can say it fell to for 25 of what it was but let me remind you that on January 1 2020 two years ago there was less than a billion dollars in D5 and now we're at 50. and let despite all the problems we had in recent weeks D5 continued to operate as it should and yes the reason obvious is permissionless it's open to anyone the quota is public its open source allows people to verify and actually avoid some of the challenges we've had but what's really exciting is you're even seeing some of the large players now experiment with defy two weeks ago we had Banks like JP Morgan a DBS SBI interact sell corporate bonds and FX transactions using defy protocols this would have been unthinkable six months ago another area stable coins the area people in crypto we hate to talk about we're actually the stable coin digital assets that are backed one to one by good old Fiat money what's been happening there it's interesting as well it was always the least sexy of the crypto space nobody paid attention to it of course area has been caught again on January 1 2020 we had less than five billion dollars in disabled coins and now we're over 140 billions and actually there's a lot of benefits there not only obviously they allow cross-border payments for hedge funds like ours when markets get choppy we're able to go into them and actually stay in digital asset space without leaving the crypto ecosystem but also there's actually practical use cases that many try to use Libra that we like to on right now was really allowing to enable moving money around the world in the same way that I'm able to send you WhatsApp message or email doing it actually for free around the world 24 7. yes it collapsed but actually what's happening some of the use cases that we are seeing today in the Remington space for example where today the total fee of a cross-border transfer is around seven percent and by the way it's double digit in many emerging countries were able to address some of these issues with stable coins again this Innovation is not going away and these are areas that will continue to see the usage and the growth over the next couple months although there are very serious risk today if I was a central bank governor of a non-g20 country think about people in Turkey in Argentina I would be worried about stable coins why because if dollarization is always a risk when it's so easy as in a stable coin it accelerates the risk even more let's talk about stable central banks the good old enemies of the crypto ecosystem today if you're a central banker and you love Bitcoin you're crazy this is a bit like a taxi driver being excited to see Uber or Kareem come in the market But Central Bankers are smarter they said hey there's a lot of these benefits that we see in digital assets that we can actually bring inside our ecosystem today let's not forget there's really two kinds of central bank money the good old cash my good old Fiat money the reserves at your lovely Bank holds at the central bank and what's really exciting is that all of us in the room will the lucky generation who's going to see a third form of central bank money the cbdc this is a moment after our kids and our grandchildren will ask us about and really obviously there's a lot of benefits we're able to get there's a lot of downside don't get me wrong but actually being able to see the exact economic activity of a certain economy knowing how much money today people are spending in Abu Dhabi in restaurants combating tax evasion or money laundering things are literally become impossible with cbdc's there's no surprise that many central banks are looking at topic today nine central banks out of ten are actually exploring this topic very seriously and of course the cbdc world is pretty vague we have Wholesales retail wholesale cbdc between the central bank and the member banks but what's really important is the world of retail cbdc where public will be able to touch and have a third former central bank money and there's a lot of developments in the space countries like the Bahamas Nigeria but also China where today literally China is probably a couple years ahead and when it comes to the space a couple hundred million people just last week they announced a new pilot where 360 million people of four Chinese provinces will start after using ecny but of course it brings up a lot of debates first one being privacy yes we can combat money laundering but how much as a citizen I'm happy to sacrifice my privacy but this is an area where actually this space will move forward whether we like it or not and as a crypto Community this is something we need to keep an eye on and I'll finish it off with obviously what's happening in web3 there's been obviously a lot of developments in the space like we all know from Mr web one to web 2 where we are now where literally a lot of large Tech firms controlling the space somebody like me for example have over half a million followers on LinkedIn I've been producing content every day for five years if tomorrow morning Twitter doesn't want me LinkedIn doesn't want me or YouTube they cut me off all my work goes to the garbage we thankfully were able to move to an Era web 3.2 that not only I can own my data but you as users you can start getting compensated when you watch a YouTube video for example and your attention or eyeballs are going there why aren't you being compensated for it and a lot of these developments are continuing to move forward and I would argue some of the recent events will actually catalyze this as well but what's exciting is some of these developments are happening while we also have other developments taking place the end the world of nfts non-fungible tokens where for the first time we can have we can mathematically prove that an asset is unique obviously despite the market crash we had in ft's adoption and awareness is generally High I've been teaching crypto since 2015 and when I asked my students now what they want to learn more about in a digital asset space ironically the answer is first nfts I don't have time to go to other use cases you guys know here but really some of the benefits we have at nfts we're seeing today in fashion and retail to be to be businesses to government with birth certificates and documents starting can be offered now at nfts which could be a real game changer so we're nfts then come as a metaverse where do you have with 3D ecosystems where we're able to interact with each other yes this guy popularized with Facebook trying to changing his name to meta yeah it was cute it was good but at least it brought attention to the space but we should not forget this has been going on for many years metaverse communities have been around for many years from things like second life to more importantly gaming the 3.5 billion people by the way UE be in the good country with the most number of adult Gamers being actually de facto metaverses and obviously it's going to allow us to rethink a lot of phenomenon so how we create new experiences from things like art to actually education to actually business interactions and this is not stopping it's obviously a big opportunity in all consulting firms have their numbers from 1 trillion to 5 trillion but obviously there'll be debates whether this will be captured by decentralized players or actually by the centralized players that we're seeing at the market today and actually there's been interesting developments from countries setting up a presence in these meta verses to even Regulators setting up a presence in these meta verses but what I want you to leave you in today is that despite some of the events that we had recently these developments are continuing to move forward if anybody has been to the last week to some of the crypto events around the world yeah everybody talked about FTX but the whole movement of web 3 and developing going on in the space is going as strong so although these are some of the developments again and I'll leave you with the warning that again whoever tells you they're an expert in crypto you got to walk away but again I know it's going to be tough for the next couple weeks I guarantee you it's not an easy time to be in crypto but all I can tell you is I promise you we're going to come out of this stronger afterwards that's all my time today thank you very much everybody it was a pleasure wing with you all thank you