Is Blockchain The Future of Money? Monica Singer (ConsenSys) at European Tech School

my name is Monica singer I live in Cape Town as you can see is the background in beautiful South Africa and I've been in this country for 39 years I feel I'm very South African and but I'm also Uruguayan I I was born in Uruguay and then I came to live in beautiful South Africa and so I'm a chartered accountant by training um but um so I'm not a technical person so you're not going to get any technical information from me today but you will get a real understanding in plain English why this is the best thing that has happened to the world um why because um one of the things that I did 24 years ago is that I was asked to transform the financial markets in South Africa from Pure paper based to digital um and we dematerialized the shares converted the financial markets into a pure electronic basis clearing and settlement System created the legal entity of a it's called Central Securities depository called straight and I run it for 20 years and then in 2015 I read satoshi's paper and my life changed totally I have to tell you I started crying when I read the paper and and why the the emotion of what I read was so dramatic was because for 20 years I had built a centralized database with intermediaries and everything I I was doing I knew that wasn't good enough I was stuck you know the pluming of the financial markets I knew that even though we had done the best we could was still a disaster H because it was sett three days later all the costs I can write a book as to the problems that we created but we we or no one in the world could see how to change it and then Satoshi writes the paper and says guys you got it all wrong you do not centralize you absolutely decentralize and you get everybody to see The Ledger at the same time and that was also an emotional Journey because my previous job was to be an auditor and a chartered accountant and one thing that the Auditors keep on facing in life is called the expectation gap which is the difference between what the Auditors can do and and what the public expects us to do so for example I'm sure many of you heard about why card in Europe this you know financial institution where the money disappeared whoops and where were the Auditors so everybody blame the or poor ER young but the truth be told that it was that the management of wild card was totally fraudulent so if you've got fraudulent management they have no chance as an auditor so here comes once again satasha said guys listen what Auditors what are you doing to this people what if we do a ler that is recorded real time and everybody can check on whether or not this information is accurate and let's put a mathematical formula so that none of them none of the actors looking at The Ledger that gets recorded real time get to cheat and that is the magic of blockchain so without further delayed I think I can start my presentation because that sets the scene as to why I am absolutely in love with this technology and I've been working for consensus which is the biggest blockchain company in the world now for the last four years and and and if I can tell you what we are building is so magical that sometimes I think I live in another planet because the the consensus of 600 staff members around the world we live in the planet that we truly are building what I'm going to talk to you about we are we are believers so the other little story I've got is whenever you know I buy crypto of course and I hold and I'm never panick so every time the the price drops I get people panicking shall we sell shall we sell and I am you don't sell you home than go some people listen the ones that don't listen are crying today but at least I'm I'm happy that I warned them okay so without further delay let me share my screen and start the presentation the other thing I um I would like to do because I don't know I hope that you had a chance at least to quickly look at the slides I'm sure you notice there a lot of information in the slides you know so I capture all the information um in the slid so that you can go and and do homework you need to go back and read this the slides so today I'm not covering the slides in detail we're going to go quite quickly to make sure that we stick to the two hours so the first hour is going to be really all the cryptocurrencies I think it's important we go through them and the second hour is that the new money see cbdcs stable coins and why those also are going to change the world so I will show you um why I believe in them and and why I hope that after you do this course um you will believe in them too okay so um yeah and then I said the the the alarm that in 45 minutes we're going to stop and we're going to do for a Q&A for 15 minutes and then 45 minutes of lectures 15 minutes of Q&A and my experience is I get a lot of questions in this session more than in any other session okay thank you let me start the presentation so okay here we are can you see my screen yes yes and as always I mean I'm encouraging everyone to ask questions even the ones that feel that this is completely new to them yes please share all your thoughts or ideas thank you mon please go ahead thank you thank you but the questions don't ask me in the middle because everything comes together I hope when you when you are when you are providing the 15 minutes Q&A exactly yes exactly so as you can see we're going to talk about history we need to set the history because I think the biggest challenge here is that people don't understand how money gets cored so we need to talk about the evolution of money how Bitcoin and ethereum came about I will mention briefly the alternative coins but and then we'll do a deep dive on cbdcs unstable coins and if we have time we'll talk about how we can save some of the banks maybe maybe not okay so very important money is a social and legal constraint it's all based on trust you all think that you know that the money that you have will be protected in one way or another um and you know what I'm going to dissolution you in so many ways because money as we speak is being debased what does it mean to be debased it means that if you are printing money like they're doing that in the US that money eventually is going to reduce in value and so what we say in our world is that you shouldn't be trusting all these intermediaries and that includes Central bank's um apologies to the Central Bank of Romania that is in the class I'm not very politically correct I have to warn you okay fine okay so this is the slide that I want you to put your my my mind in the future and the future is only around the corner okay this is what's going to look like in 2030 I can assure you that indeed everybody's going to be able to transact with each other you will not need a bank account you will have your own wallet you download your wallet you will send money any type of money real time to anybody in the world you in the internet you might choose third parties I also predict the Baby Boomers let me explain there's a massive generational Gap anybody about 45 or 50 it's not coping with this reality so these people which I am one of them so I'm not being nasty I'm being honest okay so um the older people are not going to cope so if so when they get the Central Bank digital currency in the wallet they're going to go to a bank and say could you please help me okay then the younger generation are going to say well I'm never going to talk to anybody I'm never going to go to a bank and actually my grandson is going to say granny where's the bank branch and I'm gonna say you won't believe baby the bank branch is a museum they don't exist anymore but can you believe that we used to send in a queue to ask a human being to help us and my my grandson is gonna say now you're kidding me so this is the world we bu so the the taxes will be paid real time why because once I hope that in the lecture on blockchain you could see how this technology will be used by governments to ensure that you record the transactions real time which because they are programmable they will be able to collect the taxes in real time and also just a word of warning cbdcs will be programmable and I'll show you where and they will definitely be used as a tool to collect taxes in real time also we know from the evolution of technology that many countries are going to have to apply Universal basic income and that will be paid real time no more checks no having to stand in cues and get cash no more people stealing the cash because that money will be real time paid into the wallets there will be a multitude of cryptocurrencies many stable coins and of course many Central Bank digital currencies all these currencies will be interchangeable just by a touch of a batter in your phone you will be able to transfer all these currencies the the credit card companies do not exist any longer because who wants to pay an intermediary the crossb transactions will be real time no more Western Union charging 10 to 50% charges for transfers the fees are low why because in most of these instances it's a decentralized finance um protocol where there are no employees no staff memb MERS no in buildings no costs and therefore you will be interacting just with a program and therefore many of the services will be free of course the data would always be reconciled no intermediaries and finally cash will still exist for someone for those people that do not cope with technology but you know I have to tell you that when the internet was created in 94 995 many of my colleagues said I'll never use the internet I'll never send an email because the internet you know it's been used for gambling and pornography we're not using the internet you tell me who can live today without the internet no one and the same is going to be with the internet of that okay this I'm sorry is the reality of what's going to happen in the world and you will see why so huge Evolution the the main thing that I want to highlight with this look at the dates everything takes quite a long time for um changes to happen the changes are very dramatic but the one thing that I have to highlight is that this time the changes are truly exponential the world of T5 that I'm going to cover next week you will see it's a massive Game Changer and it only really started two years ago and that is going to disrupt everything bigger than just a cryptocurrencies um this I don't know if you're aware when you think that you're paying you know when you have conversations with the banks I I always laugh because everybody says what's wrong with the payment system it works we get Real Time payments really the answer is nonsense because everything you see you get Real Time payments actually the planing of the banking system relies on Main frames relies on Swift messages which is highly highly um um problematic in terms of cost delays a multiple intermediaries look at here I bought a bicycle look at what that simple transaction went through so many computers and intermediaries and that adds to the cost that's why I'm sure you know there's 1.7 billion people in the world without bank accounts you know why because they cannot afford the bank charges and why the bank charges so much because the banks have got buildings and people and Main friends and sweet messages and crazy expenses and that is what is going to be totally disrupted this is also a fascinating story Swift is the messaging system that the banks use I've been working with them for 24 years I cannot tell you the cost of maintaining a sft infrastructure for any of these Banks it's horrific and they said it was the most secure network in the world well we know it's not true and now we have a solution we can use the internet and is more secure than the Swift ecosystem and cheaper and faster and this is a horrific story when you talk about sending money from one country to another do you know that if I want to send money from South Africa to Uruguay the money goes from South Africa Bank to New York Bank New York Bank to a Uruguayan Bank why because there's no relationship between the the coin RAM and the peso in uguay so you have to convert Ram to dollar dollar to to peso and that means that the money takes a week to arrive everybody gets a commission so I sometimes think maybe I should take you know a plan and go and take it to my family I the money will get there cheaper faster than you know all this correspondent banking system but luckily this is the first use case that is going to completely be decimated in terms of the new technology as you can see money is evolving it's completely transforming and the other thing that I I will be using terms very important terms H in terms of money definition money has to com has to meet three three definitions it has to be a medium of exchange what does it mean that if I've got this money you will accept it if I want to buy something from you you will say ah okay that's a good money I'll take it you know if I want to give you little stones for you cutting my hair you're gonna look at me and say is she mad what is this so we both have to agree that we going to agree on that currency for as a medium of exchange then it has to be a unit of account meaning account accountants we love accounting for this so we need to agree how we going to reflect the financial statements on what what measurement will financial statements reflect and that's why the unit of account is very important and the final one is store of value it must keep the value you will see today for example that Bitcoin has proven to be a fantastic store of value because the value carries on increasing so it's better than gold you will see everything I'm going to cover but it's been complicated in terms of medium of exchange why especially as units of account because the value fluctuates and accountants don't cope with this fluctuation so they need something more stable and that's why later on I'll explain to you how the explosion of stable coins are coming to the market to meet this requirement and then there are many challenges that El Salvador at Central American country made Bitcoin legal tenda and you will see they having lots of challenges because of the fluctuations but they are coming with Solutions which is to use a stable coin in parallel with Bitcoin so very important these three things are very important for you to remember a brief history because there's not enough time but in the nutshell it all started you know in 1944 the creation of after the war the creation of the World Bank and the IMF and all the discussions as to how the new money would be cre and that's why the us at that time was very powerful it says don't worry let's do everything with dollars and the dollars will be backed by gold the gold reserves the gold reserves long story you must read a little bit about the gold reserves because um it's quite interesting the history of the evolution of the gold reserves the reality is that the Americans got into trouble in 1971 because they were backing this crazy War the the Vietnam War and they were running out of money so the dollars that were backed by real gold one to one they realized they needed to print more dollars to pay for the war so then what did Nixon say guys we are going to cut the peg no more Peg no more collateral so that means we'll carry on printing dollars but it will not be reflected against the goal and therefore now we have the situation of In God We Trust that's what the coin said the not says because in reality is noral pegging and just remember when I give you the lecture on D5 which everything is based on collateral and I want you to start comparing Legacy to the new world and you tell me which one is better and you tell me if we should be applying the regulations of the Legacy world to the new world we building or we should be listening to the people that understand this and say if this is already protecting the investors why do we need so much regulation so the whole thing imploded in 2008 as I'm sure you've study the financial crisis it was terrible I can tell you exactly where I was on the 15th of September 2008 when they announced that Lan Brothers was defaulty it was the the world really felt like it it was worse than an atomic B worse and that's why I think I feel for the pain that whoever Satoshi Nakamoto is which I think is a group of people we don't know who he she or they are I feel the pain because when you read the the white paper read it again if you don't like math don't read the math just read what this paper is saying it's saying never again should the world have to face this financial crisis and the way Satoshi explains is what the result of everything it's like you know I said that when there's a problem that gets created you need a different level of Consciousness to fix it clearly satosi was not an accountant clearly he was not in banking and that that's why it was able to come up with such a brilliant Miracle of an idea which it really is for me something that deserves the Nobel pre the Nobel economic prize I wish we could find satosi um okay and then to to to improve on bitcoin's idea in 2014 at Young vitalic buttering 19 year old is beautiful 19 year old you know it's incredible a kid comes up with a brilliant idea and says listen Bitcoin is good enough but I'm going to invent on even better I'm going to invent ethereum why because in ethereum we're going to put a um smart contracts which will absolutely change the world and as you know I hope someone in a previous lecture explained but just in case if you don't know in plain English a smart contract is like a vending machine you know vending machines that you want to buy a chocolate and it says press B1 put € 10 and I'll give you the chocolate and you press B1 and put the money and you get the chocolate did you argue with the machine no you didn't the machine said if this happens therefore for that happen that's a smart contract people it's nothing complicated but is code no more lawyers no more writing a 100 million pages of contracts that you have to read which are so boring to read oh my God in future it will be put in code and that is the best way to ensure that the intentions of the parties are taking place and then funny enough Co happened and then what happened people does don't want to use cash anymore you know in 2015 I gave a a lecture to a big group of central bankers and I predicted that cash will stop being used as we know it today because of bitcom blah blah blah they all thought that I had been smoking some marijuana of the best quality so people were upset nobody wanted to talk to me and trust me I wasn't wrong look at now and it's going to get even more interesting so Evolution and the most incredible thing happened was that I kept on meeting with central banks and said guys I think we better start um thinking about a central bank digital currency because all these new private coins are going to compete with you and people will to stop using your coin and you know what happens when people stop using the coin issued by a central bank very simple the central banks lose power and that is something they don't want to lose and then so everybody was ignoring me of course they didn't want to meet with me Monica got away you know because I know them I work with them for many years and then a magic thing happened in the world Facebook Facebook came with the idea they're going to issue a stable coin for the 2 point something billion people that are using Facebook Instagram and WhatsApp guess what the Chinese and everybody I call it the the you know where like chickens without head they panic and say oh no if Facebook has going to issue this coin we're going to lose 2.3 something billion of people out of our influence and that's when China said I'm issuing my sa coin Please be aware the co the coin issued by China is not decentralized China is an authoritarian government they want to control they want to see exactly what's going on they will not respect your privacy and therefore just be careful using this Central Bank digital currency with the Chinese that's all I'm saying it's a fact you know so I'm not as I said I'm not politically correct I'm just being honest okay so in summary Evolution the evolution really traditional Finance started evolving we heard about the finex you know we we have in Europe many what we call Neo Banks it's an app they don't have branches it's all electronic but even the Neo banks are going to be disrupted and that's why just watch the space as to what revolute is going to be doing fascinating watch the space as to what PayPal is going to be doing watch the space that every credit card company will have to transform because of exactly this change and then finally the most fascinating topic for me which I can't wait to talk to you about next week is really the world of decentralized Finance because that is going to be the bottom line of what the world will be doing in the next 10 years here it's just you read it later more history more Evolution but the reality is that when the bank said no but why are we doing all this if the banking system works I keep on saying really you are asking me to give you a faster horse I'm giving you a car and you cannot even begin to comprehend what this car is going to do and that's because they're so stack in the current reality they cannot connect to satoshi's idea of this new world order which is the internet of value okay just bear that in mind very much okay let's talk about Bitcoin let's talk about Bitcoin I love Bitcoin okay you have to understand I love Bitcoin I love e um I love them because I come from South America Latin America we have had so many banking failures people have lost their money nothing everything's gone in Africa we had bank failures the money disappeared you guys had a you're on little crisises too you know remember Greece that people couldn't take the money out this is the first time we're going to offer the world freedom of their own money and nobody's going to have to tell you whether you can take the money out of the bank account because you will have your own wallet and you will control your money and you will be able to move look at what happened in Afghanistan people left with nothing not even a suas those people lost everything imagine if those people could have taken a a USB or not even a USB that all of this information is in a cloud because they keep the private coin the private keys in their memory bank the seed words of the of the access to the crypto or really access to a cloud where all that information about money about the degrees about the history medical history all of that in a cloud and it doesn't matter if you have to leave a country in a hurry do you know what a game changer that is for people's quality of life so satosi thank you for everything you've done but as you can see it's all about replacing the middleman and replacing it with this mathematical formula and no need to have a trusted third party and that includes everybody any intermediary you name it I'm not going to go into great detail as to how Bitcoin gets mine the main thing you must understand the most important thing is that this is not like traditional Bankers will say but this is vapor wave this is not Vaper way do you know that the lger of Bitcoin it's absolutely a complete transparent accurate from the first Bitcoin ever M until today you will have a ledger that there's more than 10,000 miners that keep a copy of The Ledger a copy it's replicated remember single version of the truth everybody says the same ler but it's replicated try hacking the Bitcoin Network you need 51% of hackers to do that impossible because it needs a lot of electricity actually are you able to see the your the books of your bank where you put your money are you you're not so you don't even know what's going on in the books you might see it once a year if the bank is listed and they produce the accounts really in Bitcoin your record of your ownership it's secure and that's all and nobody can touch it and that's all you need to know okay the ler that blockchain is what makes it unbelievable then this is also incredible really people compare you go to a bank okay you stand in a queue it's p processing it takes two to three days to process the the they charge you ridiculous amount of money for for keeping an account they don't even pay you interest if you keep the money in the account some banks charge you to keep the money in the account who would leave any money in a bank today really then you have the Bitcoin ecosystem and many others it works any time of the day there's no public holidays you don't phone anything it's real time hardly no charges um and only needs the internet and we are building technology that doesn't even require data to access your account and you have your Independence in your hand why would you ever want to do with a bank I don't know the same with credit cards we all know how much they charge the intermediaries all that will disappear it will be peer to peer the buyer to the seller no no one in between in the internet so I've got a lot of slides that try to explain to you why I live in Bitcoin and that applies also to e so remember the record is held in a public Ledger it's resilient stable it has redundancy because it's difficult to hack it peer top it supports offline payments you can do micro payments tiny payments you know one Euro why because it's not costly it's so cheap many banks don't allow little payments no small payment pays because the whole Machinery of payments is so expensive that they don't they can't allow it single version of the truth I told you great it's immutable remember blockchain is immutable nobody can change the ler this is also a fantastic slide that I want you to whenever you are in doubt as to whether or not you should be investing in Bitcoin just look at this slide look at the issue that Bitcoin it scares did you know this only 20 1 million ever to be issued ever so if you if you are a little bit of an economist or a mathematician or an accountant this a simple graph that I can give you in economics you have supply and demand so if your supply is short because it's only 21 million and the demand carries on increasing because people woken up to the reality of the beauty of Bitcoin guess what happens to the price the price goes up it's simple economics also supply and demand why would you ever invest in a fat currency that is supported by a central bank that it keeps on Printing and if they print they debasing the value reduces on the same principle why would you want to invest in gold gosh look at the price of gold I've got better slides to show you look at this I don't need to speak about this slide you can see it for yourself I'm not saying bet your farm I'm just saying at least 5 10% of your portfolio everybody knows in portfolio management we've got here an asset manager jaier but in portfolio management you have different levels of risk so part of your portfolio should be in crypto there's no doubt about that and in Defi and in this new world order until you become more aware and comfortable but this is the way the world is moving the other thing that you need to understand I told you the network effect you know this is not centralized you don't have one Central Bank looking after the money the dollar the Euro the ECB the Federal Reserve Bank this is a network of people in the internet open source developers all supporting the network it is simple Bitcoin is very simple because it was created by Satoshi as a cryptocurrency as a currency nothing else ethereum becomes more um evolved because it was not created specifically just for crypto currency it was created really to be the platform where applications are built it's like the Apple ecosystem that you have apps that work in the Apple ecosystem ethereum is more platform for applications and that's why defi is built in ethereum the non fanable tokens I think you had the lecture already on ethereum mainly why because of the functionality that it it has but the main thing you must not forget is the con of decentralization power back to the people Empower everybody even children that are told how to play with an iPad when they're little and that they know how to send emails we're going to train our children from the time they're little to get their allowance in Bitcoin so that they can learn from the beginning to be financially independent not depend on the husbands girls or some I don't know Authority we want to empower everybody anybody in the world to have Financial Independence and now we have the way through this also as I said what um inflation inflation is when you print you know I want to show you something I don't know if you can see this I don't if you can see it you know it's a note okay of the bank of Central Bank of Zimbabwe the note is for1 billion doll billion dollar buys you chewing g$1 billion doll one chewing G that's what happened in Zimbabwe they had to stop using this money because they had debat that to such an extent nobody wanted it not even a toilet paper please be aware what countries are doing of course confiscation you know all of a sudden you wake up one morning it happen in many countries and the banks are Clos and the government said all the money you got in your account belongs to government H really okay censorship China remittances 10 to 50% to the poor people in El Salvador and many countries in the world this is but plain criminal and then of course I show you store of value the immutability and the fact that it's decentralized 50,000 notes there are got it wrong 50,000 notes 50,000 copies of the lger this is also just a simple um example of how much the market value of Bitcoin is at the moment you can read that later this is also fascinating and you will see that the first countries to implement a central bank digital currencies will be the Emerging Markets why because we have so many challenges in our banking system that this is the no-brainer in terms of implementing something that you can give your people your citizens access to this fantastic technology I will cover that later this is incredible how slowly but surely the institutions are coming they're waking up that they should not miss the BS you know so yeah a lot of people think that is too light is never too light then this is also another um we call it fud um which is CR is sphere so people that don't like Bitcoin but they say no it uses a lot of electricity it's bad for the ironment really now compared to other functions and the truth be told is you will see mark my words that biton would be the first one to encourage use of Natural Energy that's why El Salvador that has got volcanos are going to start mining using natural natural volcanic energy in wyomi that they've got excess oil production that is not being used they're going to mind using the excess w Texas you will see the changes that are going to come because of mining of Bitcoin these are some of the countries as we know in order to make money when you do mining you need a source of energy where that is cheap electricity must be for free and therefore you will find that most of the mining braks are in countries where electricity is quite cheap I don't know if you heard in the recent weeks China has banned the mining in in China and it's also binding crypto and guess what the price didn't blip meaning we back to normal prices the Chinese can go and and leave us alone and have their own little money because we have money that protects the people so this I want you to read whenever you in doubt whenever you say what did this lady speak to me about stop and read this sline because it will tell you exactly why Bitcoin is here to stay and here also so because people get confused you know that people always think that blockchain is Bitcoin actually blockchain is The Ledger of everything Bitcoin is just one cryptocurrency so whenever someone gets confused please show them this slide and read it yourself so you will see the massive difference I didn't give you the lecture on blockchain but I can assure you blockchain is the basis of everything and then on that lger is when all these other new inventions are coming and crypto Bitcoin is one of them okay so now let's go into ethereum this is really my favorite coin of course it should be my favorite coin because I work for consensus consensus was created so that we could build applications in the theum platform we have codify assets which is a Sandbox for any type of tokens we have codify payments for any type of coins and it's a plug and play anybody wants the technology in a couple of weeks we connect them and you can go ahead and be part of this new world order think of ethereum as the world computer definitely we know that what Bitcoin does for payments ethereum does for anything anything that you want to invent in the blockchain ecosystem ethereum is the platform to use and if if the coin is what we call gas is what you need to pay for using the ethereum platform Okay so now let's understand the big difference the beauty of the ethereum platform is that it has the biggest number of developers it's open source anybody can come and improve the platform there are already 350,000 developers globally it's the world largest blockchain technology community and therefore that's what is very important you know when I see some countries buying into a platforms that are private and permission I feel so sorry for them because the whole idea of this technology is that that you do not get stuck in an wall Garden you are going to benefit from the open internet the open internet is the most important thing it must not have W Gardens it must be able to access everybody in the world when you create something for your company your vision must not be Spain must not be South Africa must be the world this is the internet as you can see this is just an example of all the projects that we have implemented already our consensus and this is also to show you the ecosystem the ecosystem has got standard sets and users and and and wallets it everything has been built already so that new we call them the newbies you people are the newbies you knew the newbies will come in in an environment where all the technology has already been built which is fantastic because we the builders have been taking years and years to get to this point so when the new people wake up they will come to a world that has been built like the internet and then I'm sure you covered that already in your lectures the difference between public and private the world is moving to the public you know when the internet started we all started in intranets we were all scared to send emails to each other and then we realized oops I think we can use the internet and then the world open up and this is exactly what's going to happen happen with an internet of value and as I said if if is many things remember store of value medium of exchange unit of account well if it's even better than that you've got the store of value because it increases value it's also a capital asset because you can take your e and you can stake it stake it meaning you put it into an account in a D5 protocol and you earn interest you earn interest on your e and then it's also gas is a consumable why because you need gas to create an nft you need to pay with E and therefore it's also a unit of count and a medium of exchange that's why we call it the ultrasound money and I hope you all subscribe to bankl and you're listening to the podcast listen to the ultrasound money podcast is beautiful the one on the metaverse there's so many beautiful podcast that you need to um put yourself up to date um the this is just for you to read later the evolution of course I'm sure I hope that you covered the difference between proof of work and proof of stake ethereum layer to is being developed so we moving from proof of work to proof of stake and therefore the the cryptography that will be used in ethereum will not consume the same electricity that is consuming now because it's going to be a different type of cryptography but I'm I assuming you covered this already and this is also fascinating very important look at now the the one question my clients always ask he says how many transactions per second yes today only 30 transactions per second but the layer two that is going live next year is going to beat a 100,000 transactions per second look how it will completely decimate the credit card that's my alarm my alarm and very quickly let me finish with e so we can go into question and answer but can you see the changes that coming these are just comparisons for you to read all the other um platforms please be very careful about these other platforms if they are not decentralized if they are not open source if they are controlled by people you don't know who they are you do not want to go to anything that is not open source clearly as you can see also the volumes of transactions and also it's absolutely true that at the moment the crypto currencies are mainly used by people not by institutions and it's mainly the Millennials the younger generation because I think that baby boomers you know 50 and up are horrified by this technology there are many coins they're all very new be careful some are very good some are very not so good so just be very careful what you get involved in terms of the alternative coins here a lot of description on the various coins and then I gave you a lot of information each coin so you know what you're getting into read your notes and be careful and this I think it's one of my last slides is to show you that there's an explosion of cryptocurrency exchanges the fascinating thing about this is that most of these exchanges that are so successful just trading ex cryptocurrencies are going to now go into the world of traditional Finance by using the same rails that they use for crypto for tokens so when I left my the company I created I said you guys will not exist in 10 years time why because the number of listed companies in traditional exchanges will completely reduce and I am right already we can see people are not listing in exchanges Legacy exchanges as much because the the new centralized cryptocurrency exchanges are now creating tokenized Securities and they're going to out move into the defi world and compete head on all of them so good timing wow okay so now I'm gonna stop sharing and then let's open for questions but only the areas we covered so far which is cryptocurrencies I will now cover after the question and answers I'll control the time I will cover the um any um the central Vantage currencies and stable coins ask me questions yeah Monica um back to the slide of uh to exchanges and I'm being aware that China recently they ban all the transactions in crypto in China what happens if they decide to close most of the changes that the people operate and people use to buy and sell cryptos do you think this is a threat the answer is not because already they started closing the exchanges you know I don't know if you've been reading lately you know the exchanges have been closed all the mining bricks are gone this is the internet nobody's going to stop them I attended a lecture very confidential lecture that shows that China is creating their own internet so it's going to make it compulsory so people trading with China to use this other internet that they want to control but nobody can stop the internet you see the point jaier is really fascinating to watch let the Chinese do their own crazy stuff but let the people have the freedom to choose if you don't live in a autocratic government okay thank you question I actually have not a question I have something to add to what you've been saying about about um um Regular Banks so just to give you a small background I spent two years working in the command center of PayPal so I had their opportunity to watch realtime transactions how they fly so um basically between the banks you just compile all the transaction and create one settlement job so the actual interaction between the banks is just once a day so it's not real time obviously uh second thing thing it's a supply and demand so I just verified that 2020 on Earth this was 56.1 Million millionaires right so obviously in 2021 with the money printing over trillions here in the USSA uh we are have way more than 56 now so even if you divide if you know how many millionaires if each person decide to buy one one Bitcoin it's not going to be enough so that's that's one of their uh driving factors and also you mentioned centralized um open source projects right I just would like to to say that there is a difference between open source and centralized projects there are many projects that are open source however they are still controlled by their um they need some nodes right so if it's centrally control node even the project is open source there is still a place uh in the world where you can just kick the office door and just take shut down the the machines which happens multiple times with like for example recently with that um what's the platform patreon I think when the Amazon shut down so regardless of the place there are still possibility to shut down those machines so yeah that's something I want to add thank you Val that's why did you see my word be careful decentralization the closer when I advise central banks Central Bank of Romania you here I keep saying the closer you stick to the philosophy of satosi the more you will protect your people and the more people will want to use it so one more note sorry um speaking of the banksters actually I call them banksters because if you're right now if you decide to go to the bank and say cash out over 10K in your in us they're going to ask you where you're going to spend this money to so though that's your money it stays in your account and you just want to take out they're going to ask you how you going to spend this money so which weird I call it the Nan state do you know in America if you want to invest in shares because I come from the Capital Market you have to prove that you know what you're doing really yeah no don't give me they care they care about you they want to protect you no are we being treated like idiots no it's scary okay but let me not start on that topic okay as some more hands and Lucia you've got a question yes thank you Monica um Monica what what is the place um that you see so for operations that are more long-term like loans and mortgages where what is the spa what is the place for Bitcoin and blockchains in that in that kind of operations keep that question for the decentralized finance lecture okay okay I'm going to blow you away okay J janora J yeah yeah hi hi mon my name is D and actually I didn't have a chance to introduce myself uh but yeah I come from banking sector and actually I'm working at compliance and my question is actually related to this one so like you mentioned like of course there are many so advantages of uh Bitcoin and of these cryptocurrencies but my question actually relates to the fact what's your opinion and what's your intake on the fact that um within this term that we see it's immediate transactions how can this compliance perspective somehow being like uh involved in within terms of cryptocurrencies I mean that there's a big network of people dealing with blockchain and uh these Bitcoins so meaning that how can we check how can we how can we like screen those those people behind find these transactions like what's your thank you thank you very important I want you to make a note go into chain analysis chain analysis have you heard of them chain analysis okay go into chain chain analysis fantastic company what do they do they've got technology that it uses artificial intelligence and they can today track everything in the Bitcoin ecosystem remember Bitcoin ecosystem is a ledger immutable complete from day one to real time so imagine that you plug artificial intelligence that can start working out remember the only thing you can see is a key a public key not a name but eventually with enough computing power you can work out that that key is repeating and therefore you can track it they know exactly for every single Ransom way where the money came where it went how which exchanges it's is like the most fascinating thing I went to a lecture that they could track um using blockchain technology I'm going to use an example when we do the lecture on supply chain they can track weapons of mass destruction using blockchain technology and so what I'm saying to you is that your methods of compliance will have to be modified to cope with the idea that this a ledger that is real time and that is is complete and immutable and it's digital so you will not need so many human beings you're going to use more artificial intelligent type methodologies to track and to control compliance then we also are seeing fascinating remind me on D5 when I tell you the story what fire blocks is doing in terms of lending and and compliance with kyc AML so so can you see what I'm talking to you about that the world is changing Auditors will not come a year afterwards the audit will be done real time and therefore your job in compliance will be a more real time to be able to observe exceptions and track the information in The Ledger and you will have a node and you will have this lger that everybody can see at the same time as everybody else you won't have to rely on someone to send you an Excel spreadsheet as to what the bank is doing the register your regulator will get real time information of all the dealings of the bank it's a game changer yeah but how can we then like say that um to what extent that information is reliable so you know what I mean uh meaning on terms of now I'm working with different databases for uh terrorism and all these money laundering persons like this is going to be always the question like um on which database do we rely on like how can be so much generalized and like how can we take into consideration all those financial sanctions and embargos that like always changing but thank you did you see did you see the language you're using several databases yeah re re language language in this world decentralized single version of the truth there's only one leer there's only one Bitcoin lger there's only one ethereum lger not many only one and you plug into it it's immutable it's complete it's got a mathematical formula cryptography that prevents cheating when the recording takes place it's secure and therefore you will rely on it and you will use tools to help track the information that you need okay thank you it's it's a new world that you're going to be living in other questions we've got three minut Adan one question if you don't mind um about the example that you mentioned previously of um currency exchange between two countries uguay and South Africa uh to my knowledge these are two sovereign states they have their own Central Bank and I don't know if they have any Trade Agreement or other kinds of agreement so I'm thinking if you have a direct trade between two countries that are not subject to the same uh inflation control to the same labor code standards to the same taxation uh do you see any let's say risk of breaching fairness of competition uh between you know economical agents that maybe are subject to different regulations so they bear different cost but then this is not reflected in direct trade among two countries that don't have maybe a customs Union or they don't have a central bank like the member states of the EU are subject to to the euro Zone actually subject to the same um Central Bank so when they're not in a single system for trade then civil rights even civil rights plays a role in the economy because you could have forc Labor or child labor and this normally you don't do trade in the same um frame with this kind kind of count so how would you see the risk of breaching ad thank you for the question I will cover that in big detail in the second part of the lecture just remember is about stable coins that are being used to transfer money between two different central banks or like you will read download the paper MCD Bridge the paper by the bis recent paper on Building Bridges between central banks different central banks will issue their own Central Bank digital currencies people will either use stable coins to transfer between each other or they will join the the different blockchains in bridges so we recently released a paper consensus released a paper the project successfully done between Thailand Hong Kong China um the um the Saudis this project you can download the paper and and you will see how we build a bridge between all the central banks so that we could do real time transfer of value there we are and the paper is already there fantastic so everything is in the internet you can read everything that's the beauty you know and so here is a a university that you're attending that will guide you what to look for and to open your eyes to this new world order last question um and then we can move on no more hands but don't be shy ask me another question one more question are you shy okay then we'll carry on hopefully we'll have more questions at the end I love questions be questions clear the mind no um okay so what I'm going to do is share my screen uh here okay so here comes the New World Order of central banks so Central Bank friends are feeling very threatened so that's why they realize that they have to do something okay but the truth is that I encourage them to do this this is essential why because I'm sorry to say but I don't trust Facebook after what they did with data that everybody knows that they abuse our data and we share it freely and we let them you know sell our data and we don't care and we carry on using Facebook imagine now 2.3 let's say billion people using Facebook's money I'm sorry I don't trust them so I really hope that central banks will issue a central bank digital currency so that we can start educating the masses how to use this currency and for people to have choices you could choose to use the euro Central Bank digital currency or the dollar or the ran or whatever and you can still choose to use crypto or stable coins the it's all about choices okay I told you about the evolution of money from gold then the central banks print the cash the commercial banks are the ones that give loans and generate ER money into the system and then we have crypto and then we have all these new types of monies which is table coins and cbdcs have a look at this this also fascinating fascinating why because look at the needs of emerging markets and advanced economies I give you an example in America for real they've got this insurance that if a bank fails the deposits are not lost in most Emerging Markets if a bank fails sorry you lost your money and therefore the interest the needs of emerging markets for a new payment mechanism is much more important and also the issue of financial inclusion as I said 1.

7 billion people left out of the economy no banking accounts no access to any wealth creation so imagine if you now create a cbdc that you can give access to everybody I don't know if you heard that now Twitter you can use your Tweet your Twitter environment to send tips so you could in future I actually said that many years ago that in future you know in for example in South Africa we have a lot beggar so in every corner you know you're standing at the traffic light is a beggar in future because people don't want to give them money because nobody wants to touch the coin and be close to a bega because of Co so it's horrific that these people have to have a stick with a little cap you know so people will give them money so the point is in future you will just have like either a tweet or a card that you will tap and be able to give um tips and and donations and and pay to each other can you see how everything will change and why is this such an amazing technology to be able to improve the quality of life now the most important thing you will have to take with you about cbdcs you need to know this this is significant central banks only issue the coins and the notes that's it the rest of the money is issued by commercial Banks commercial Banks as you you when you put your money with a Commercial Bank you have the big risk which is called counterparty risk counterparty risk that means that you do not know if that bank is going to go under if there is no insurance the money is lost central bank money as we know is backed by the central bank and therefore represents a claim against the reserves of the bank the central bank and therefore the chances are that that money will not be lost you will re you will hear that there's two types of Central Bank digital currencies one is called the wholesale the other one is the retail retail rep replaces cash wholesale replaces the interbank settlement system that happens overnight let me explain what do I mean every night every Central Bank in the world operates in the same way it gets the balances of all the commercial banks that have accounts with the central bank and then overnight patch processing main frames and Swift messages settles the bank balances between the banks and that's why it's very difficult to sometimes get um reflected let's assume that I pay you um that I'm with One bank and you are with a different bank when I pay you that amount doesn't appear in your bank account immediately it takes overnight for it to reflect in the books of the other bank and that will be replaced by a realtime settlement system real time settlement as I said to you before all the central banks are going crazy and they all want to introduce cbdcs especially in the retal space why because China has now released this cbdc so it's um fascinating how it has put the fear on central banks this is for you to read I want you to apply your your mind to the slide it's very important the difference between wholesale National and crossb um Adrian I think you asked me about the crossb this is the crossb how these banks are going to achieve this is the project I mentioned it's called The Lion Rock Inon Project Read the white paper and see how they achieve the bridging of the central banks then you have the resell different types of retail solutions by different central banks as I said wholesale retail and the crossb these are the three models these are examples of proof of Concepts that we have done at consensus with central banks everything started with a wholesale why because everybody thought a wholesale is easy because it's not politically sensitive why is Central Bank digital currency retail politically sensitive because we will definitely reduce the need for banks the moment you have a cbdc you will rather have a cbdc that is supported by the Central Bank than have a counterparty risk with a Commercial Bank this is a picture that I love because here it's quite a little joke how sat she saying what the hell is this Central Bank digital currency and then everybody the feat currencies Bitcoin and St coins look in this Bel because cbdc is are developing in in something that it sounds like a real fruit salad this is also what I said to you before the Emerging Markets are going to be the first ones to introduce dbdc you can read about project San of the Bahamas or the project in Cambodia all of these white papers and actual project reports are absolutely free to be downloaded from the internet this is very important slide that I want you to look at have a look at the Central Bank it shows how they comp how they create their own reserves and as you can see the cbdcs is part of the reserves of a central bank and the deposits are when you put money in a bank in a commercial Bank your money is part of the balance sheet of the Commercial Bank the bank uses your money to go and invest in long-term Investments so that they can earn a return and that's why those deposits could be lost but cbdc can't and that's why if you have to choose between a cbdc or putting money in your bank account you will always want to choose a cbdc so what is going to happen is that cbdcs central banks that don't want to decimate the banking system they will put certain conditions you can read this and apply your mind as to the conditions that will become applicable by some central banks other central banks will be more open but we still don't know which way the world is going to go I find it fascinating that the European Central Bank said that it's going to take them two years to research and two more years to implement a cbdc in four years the world would have used all the stable coins in the world and we start ignoring the Euro so I don't know why they're taking so long because yes there are some questions that are very complicated but I think it's taking very long because they trying to accommodate everybody as I said and I'm going to repeat it the closer to a crypto currency like Bitcoin um philosophy the cbdcs are the more applicable relevant and easier to use by the citizens and I love the quote by the Central Bank of England that said I'm not here the governor he said I'm not here to protect the the the banks and therefore banks are going to have to be very aware that if they don't change the business model the disruption will be very big one of the ways that the banks and payment service providers will be protected is that the central banks will not want to deal with a man in the street so what they're going to say to the banks and the payment service provider is you deal with the the opening of accounts kyc AML I will just give you the right to do this great opportunity for new companies to come in and apply to become payment service providers remember the single version of the truth lger so the lger would be one lger maintained by the central bank and then accounts will be held by fexs payment service providers and various Banks all of them will keep a copy of The Ledger the nodes remember the nodes but the central bank will decide who has access who can open accounts and we'll have absolute view of all the trans transactions um this is just to show you one of the products that we created which is a cbdc Sandbox so that if anybody wants to try out a cbdc model and learn you we give you a Sandbox and you can practice and if you want to create new money we give you the platform and in a couple of weeks you've got the the the complete technology solution this is just to show you that for the Central Bank the direct model where you have to go and open the account on behalf of the clients it's very expensive and that's why it's not a good one on the on the intermediary intermediated model which is when the Central Bank allows A Banks and payments providers to open the account is a very easy for them but many are going to have a hybrid so let's read the bis papers and see which way the central banks are going to go the most important thing I want to remind is that central banks have got a chance once and for all to use blockchain technology many will not use it many will still go for a central database many will miss out on understanding this technology the one thing is for sure is that many have realized that the money can be programmed and what do I mean cbdcs could be programmed so that you cannot spend it on gambling or pornography and that you have to pay your taxes and the programmability comes from the concept of the smart contract remember if this happens therefore that happens programmability will be built on the cbdcs composability is this application I will explain in much more detail in the defi class but is the ability for this technology to be used and interact and integrate with all the other technologies that have been built that's very important that's why one one cbdc should be able to inter and be exchangeable with another and then of course now reconciliations and hopefully they will respect the philosophy of the decentralized concept the one thing I have to tell you is that already I heard that the digital dollar project and the ECB project will respect confidentiality up to 10,000 EUR above 10,000 they will ask you to disclose this is what the technology would look like on the left side you've got the current technology and all the the rtgs the the merchant Bankers the credit cards providers and then on the right hand side as you can see it's a simple technology internet digital currency Ledger one Ledger one version of the truth wallet providers and then wallets that you download for free and you can access this technology from wherever in the world you are this is from the bank of England where they trying to explain that you're going to have still have Bank notes than the cbdc and still they're going to um promote the use of banks creating Bank deposits and e- money so that's a resale now let's go into wholesale wholesale as you can see um the developed countries mainly developed countries went for the wholesale why because they it was just a project that they could do between the banks it doesn't affect the public so meaning use cases have been um implemented not implemented but proof of concept they still researching um we did in South Africa project coka if you go to the website of the South African Reserve Bank you'll see the paper explaining in great detail how this project was very successful this is a picture of the project where we have all these Banks all of them sing real time and the central bank was able to see everything but every Bank couldn't see each other's balances so it was very very successful then this is a very sophisticated proof of concept that was done by the monetary authority of Singapore as you can see this is very much for applications at a higher level in capital markets for bonds money markets equities supply chain and trade Finance this I listed all the projects so if you want to go into this in a deeper dive I recommend you download the white papers you read exactly how all the plc's have taken place and you if you if you love the topic then you can start comparing one to the other okay this is stable coins stable coins are a new form of money it didn't exist before why did they come about simple because the world realized that Bitcoin was fantastic but it did not create the ability to be a unit of account or a medium of Exchange change why because the value fluctuates and you cannot exchange something imagine the you know that the first Bitcoins were used to buy a pizza that pizza today would have been worth millions and millions of dollars if they had not bought the pizza with the Bitcoin so that's exactly the reason why we know we cannot use Bitcoin to buy a pizza and therefore we need something more stable so what is a stable coin a stable coin is actually like a Bitcoin but is collateralized so it's a digital coin that uses the ethereum ecosystem for example and you collateralize what does it mean let's assume you take for example USD coin usdc a company called Circle created usdc which is very very well well accepted and used op PX is another one very very accepted which is a all back by the dollar so in a bank account there an actual account that Circle owns that says dollar account fear that Fe it's then a one to one equivalent to the USC that has been issued in circulation Circle knows that in order to be um reliable they have to publish the audit report on a monthly basis to show that the Fiat is truly collateralized because we have understanding that there are other coins table coins that even though they say they have been collateralized in fact they are not collateralize so be very careful which stable coin you work with then we have other stable coins collateralized by gold or diamonds or oil you know Commodities then we have stable coins collateralized by crypto but because it fluctuates what would happen for example if you if you got for example the stoc called make a die you will be asked to collateralize 150% to cover the fluctuations and if the fluctuations are big you have to do margin codes so that is a different type of collateralization mechanism and then these others that are not collateralized by anything but simply by a mathematical formula which this is to show that most of the stable coins have been um launched and use in the ethereum platform this to show you the trading as you can see usdc by far is the one that gets traded the most because normally what happens is you buy crypto but then you've got a to pay your rent so you're not going to pay your rent with Bitcoin so you transfer some of your Bitcoin into USD or usdc a stable coin and that is one to one back to the dollar and therefore you pay your r in a fe packed stable coin this um Val you're going to appreciate this slide because I took to compare um I I compare PayPal to stable coins as you can see stable coins open in general they really are open source um money by PayPal it's a wall Garden it's controlled by the central database of PayPal um stable coins can be used for any application in defi PayPal you have to apply to see PayPal it's accepted in this country that country that that Merchant that Merchant in stable coins you will download for free any wallet I recommend metamask metamask is for free you download it and you can have any stable coin um in that um in your wallet if you want to have PayPal you have to actually be hosted by PayPal um as I said stable coins are based on the blockchain and therefore the network effect PayPal has the network effect but is controlled by them stable coins are transparent why because of the blockchain and the PayPal um Ledger it's absolutely private so once again so as to explain how different is stable coins from E money completely different stable conses earn yield in in PayPal e money is not allowed and stable coins anybody can create a stable coin I can assure you that all the credit card companies will create their own stable coins many banks in the world will have their own stable coins we're going to have a amazing number of stable coins of different quality of collateral available to use in the world and that's why PayPal if you have a look at how they transforming they're allowing cryptocurrencies they are going to issue their own stable coin because they know that the model of centralization will be disappearing this is JP Morgan fantastic company what they did they create JP Morgan has got many branches around the world so transferring money from one branch to another in different currencies was very expensive so what they created was the Onyx which is a um is a coin that they use internally for their own transactions they save hundreds of dollars and simplify the back office function because of this this is also an important slide so you can see the difference in latency in efficiencies and once again H compare the difference between a stable coin and a traditional payment service you were asking me about crossborder crossborder will stop being um using Swift crossb will start either use stable coins or will use Bridges between the various central banks or Bridges between the various coins remember composability one coin will be able to be transferred with it another so if a so if um let's say JP Morgan coin will be transferable and exchangeable with the Goldman Sachs coin and therefore all these transactions cross border will be real time and nearly for free or we have like a um I'm sure you heard about Ripple Ripple was built just for the purpose of remittances using that platform but in reality you don't have to be stuck to one um ecosystem you need to go to the one that has got the most Network effects as I said stable coins will be issued by many central banks and they will use this um I give you an example in South Africa and we have the in the region it's called the southern African development region of many central banks that um they have the option either to build a bridge between each other or issue a stable coin so that the payments between let's say Tanzania and Zimbabwe is not using their coins is used a stable coin that is backed by the dollar and therefore it can be done in real time the project that we just finished with Hong Kong Thailand um um and um the U and um the Bank of China this one is the one released this week which is called the McD cbdc Bridge it uses a bridge which connects each Central Bank to each other this is examples how a credit card companies are going to now use their Network to allow different stable coins and they will generate their own stable coin so let me see the time ah okay so now before I carry on with um way to for the banks I want to stop here and I want to give you a chance because we still have time so that we can cover questions I hope there lots of question do you want me to look at the the chats and see where are the chats and and follow the the thoughts and I'm I'm very surprised nobody has any questions no no no I have some questions Monica regarding stable coins for instance tether or I don't know exactly how to pronounce that there's a lot of noise about Coller on one of the most liquid stable coins as it is TE so um obviously that's a threat in terms that if it's not fully cized and because of the amount of uh of coins issued by by tether it is obviously a a threat for for all the investors and uh and Al and also for all the out coins because at the end you will have a a kind of effect on the wall EOS system so what's your opinion on that I mean um it is really jit for investors isn't it okay so just remember the rules of Finance apply which is ask questions and that's why there's a lot of as as you said a lot of questions being asked about vaa um and as an ex auditor I wouldn't put my money into them and that's why what we've seen is that paxos the other stable coin they went and published the audit report that confirmed that the number of stable coins they issued are completely backed by Dollar reserves then we also heard cyle Circle that issued usdc they are doing two things they are first getting a banking license so they going to be regulated as a bank and number two they plan to list so they're going to be regulated as a list company and they know they need to publish in real time the reses it shouldn't be an argument and you will see when we cover def5 next week that I'm going to encourage you that before you invest in any of those protocols which remember it's just a smart contract that you look into the website and see the audits that have been done on the smart contract because the main thing is that someone must audit the protocol to make sure that the protocol won't disappear tomorrow no you don't want it to disappear because there's no one to phone people so so in the same way you apply skepticism and Dora in your compliance you skeptical I want you to be skeptical about this new world because you know what I I give you an example so sad South Africa had two of the biggest py schemes frauds in crypto C to currencies in the in you know since the creation of Bitcoin too why because someone went to tell South Africans give me your money I'll invest it in Bitcoin Give Me Your Money invest init I think that satosi would want to die just thinking that that happened because the whole idea is that you should not have to give the money to anybody but yourself you download the the the the app you download the wallet and you are your own bank you don't have to ask permission don't give the money to anybody do it yourself keep your private key safe yes it's scary to keep your private key safe is scary because nobody wants to take so much responsibility but I really think that you are all educated and you're going to get to the point that you will not ever want to trust anybody else but yourselves with your own money and that is the point of this new world order okay so do your homework ask questions join join the discussion groups join Twitter tweeting the the Twitter ecosystem will tell you what's going on every day I listen to a podcast or a read and I know where to put my money and where not to put my money you know there's some exchanges that The Regulators are going to close down don't leave your money with the exchange mot not your money not your private keys not your crypto if you do if you leave your money in The Exchange The Exchange could be hacked not the blockchain The Exchange is haed if you don't have that money out of the exchange you don't have your money it's with the exchange you know in capital markets stock exchanges are not allowed to do custody so why are we allowing exchanges cryptocurrency exchanges to do custody we the rules of Finance shouldn't be thrown away it's the same rules but you know we we must you know we mustn't lose sight of basic key principles ask question don't invest in what you don't understand don't give money to someone else to invest it on your behalf Don't bit the farm no keep your private key safe in a cold storage I you've covered the concept of wallets and cold storage and H Storage but don't leave it with the um the currency the cryptocurrency exchanges did I answer your question s yes indeed Monica thanks pleasure oh Mar Consul hi morning um having a lot of fun uh quick question uh because we're talking about the stable point and as well as cbdc so for me El Salvador for example why why did did you explain like why he went to a Bitcoin coming from his profile and instead of having chose for example a stable coin I know that he I mean his uh motive was like the US dollar right like um the par and like the problems of like the but being an Emer economy why why did he do that very simple how do I explain for me you know I I was so happy you know that day when he announced that he's making Bitcoin legal tenda yes of course you know hell bro broke loose because the IMF is upset and the World Bank and everybody's going you know just remember let's put things in perspective in El Salvador 70% of people of Salvador they don't have bank accounts and the majority depend on remittances from the US it comes via Western Union Western Union charges between 10 to 50% for transfers if the value that you transfer is small the charges are fixed you know they take 50% of that so this president that understands Bitcoin realizes that if they want to give freedom to his people and IBL them what better way than to do this and then all the Bitcoin maximalists are now going to Sal El Salvador to say I want to invest I want to help the people I want to make this a reality I'm gonna be here to educate this this another kid 27 year old you please listen to those podcasts are unbelievable in what the Bitcoin did or in pump p Anthony Pompano interviewing Jack M Jack Jack Mah Jack Mah what did he do he took the Bitcoin ecosystem and created the lightning Network and a company called strike you can download the app and this app enables people to use Bitcoin in a safe way so he is what he started in a b in El Salvador you know that's how the whole idea started and because he was doing this the president read about Jack and he says if they can do it in the beach and these people are opening accounts and paying with Bitcoin so easily I can do it for the country and look at this it's such a miracle who knew about Salvador in the world now he's going to use volcanoes to mine Bitcoin do to know what it's going to do to that country it's going to be a game changer he's going to BL people they want you know from the be you know so I and I don't know if you heard that Kuba said that they will allow Bitcoin Kuba when Kuba didn't even allow the US dollar you know I if you've been to Kuba you couldn't pay with a US dollar you were seem to be the money of the of you know the bad people whatever so the point is you know how you incredibly you're going to uplift people because as I I gave you this lecture on bitcoin and it's Freedom it's Freedom immediately stable coins let me remind you are private it's not decentralized it's not open it's not it's it's usdc is owned by circle paxos is owned by paxos and why should a government rely on one legal entity to make them Rich when you have the decentralized internet of value available to anybody in the world already the El Salvador if I want to say if if you live in El Salvador I could send you money real time today I don't have to ask permission or pay anything that's all and he's going to then educate his people to use this internet of value from that education trust me what I'm going to tell you from that education the little kids are going to start saying the younger generation will only know Bitcoin and therefore they will know the internet and they will know the world and will trade with the world real time because just remember payments is only one side of the transaction you know delivery versus payment if you want to buy you know a book through Amazon you need to pay so imagine you're going to be able to buy anything in the world with Bitcoin in future or stable coins backed um using the same system real time cheap and all the control but remember it's all about trying to not centralize it's about using something that is decentralized that nobody can control China cannot control Bitcoin China the most autocratic country ever and powerful country is going to apply you will see is going to apply pressure on the comp and the countries that are trading with China to say ah you owe me money you can only pay in the electronic Yan and slowly but chil I'm scared that the African countries are so dependent in China will become slaves to this Chinese um coin you know so that's why when you read the literature everybody saying to the government of America this is your chance not to do the same things that China is doing you know and liberate people and allowed the internet I don't know if you know the story but the internet in Europe was banned in many ways so what happened all the developers moved to the US so the inter so Silicon Valley took place because Europe banned the internet is that what you want or do you want to open up to this new world order and that's what he's doing I think it's fantastic no no I think it's fantastic I mean that's why I mean I totally agree with what you're saying but for me uh what's his name kuo the president I mean it's it's the opposite of of wanting the centralization that was my question yeah look we all have um you know know we always say in our world our planet we say Bitcoin doesn't need Heroes so you know what let's see where he takes this you know because as as we know he's an autocratic sort of personality but he did a good thing you know so let's see you know but it doesn't matter if he goes crazy and he becomes you know a dictator who's going to stop Bitcoin I don't know of course it was just what you know like what what you were thinking of yeah so I love it other questions any questions guys come on so uh well talk to me did you get upset I mention um paper I don't work for them anymore so I don't care anyway uh let me disagree a bit about isation of people so I I disagree that us is trying to do it in fact they're quite opposite in this case so I don't think that's the the way it's going to go and second of all I just want to wait well I didn't understand what you say what is it that you disagree with what with the US liberating people so that there will be no liberty or there will no freedom for people here oh in America yes well we're talking about the United States and Canada in particular in which way do you think in which way you do you think you're not free I thought you were yeah that's that's Hollywood movies really wow okay let's not get into politics yeah let's not get into politics yeah so anyway I just want to touch a bit what uh said uh um about stable coins right as you mentioned those are private companies right even though they have some sort of audit they still have a smart contract and um tomorrow the wind can change and the smart contract can be uh let's say you have VA without kyc so all your assets can be frozen overnight so that's that's something that's uh we need to be cautious about agree agree agree so remember you know say G say G you know I still think you know the cryptocurrencies is the way to go but at the moment because the fluctuate you know you use it you use it if you really have to not because really there are alternativ such as Heaven protocols right now uh been developed and there are ways around this however it's it's a quite dangerous move because uh it drives the market up because they can print as much as they want basically or they claim right so it's it's drives the price up and that can be again very dangerous because the market can change direction overnight yeah yeah it does yeah it's an experiment that's why don't bit your phone yeah thank you well good points very good points um what happened to the rest of the team guys hello I I also have a question Monica yes excellent do do you see a scenario where one country can have several uh cbdcs like we have a a JP Morgan coin and then we will have a w fago coin and we will have a fitcoin and if so how will retailers and other Banks or even other countries um trade with them how how will it work so definitely you'll see and I can assure you that all the American banks will have a stable comp back by the dollar because remember they want to be faithful to the dollar you know and the Federal Reserve Bank is going to put pressure which is what happened with Facebook I don't know if you know the story it was fascinating so quick story no um and you'll see it's gonna be repeated the story you know um so what happens is Facebook originally went to Switzerland and said to the Swiss Regulators I will create a legal entity and I will be regulated by you guys you know the S is you know and um and the the coin that I'm going to issue is going to be back by a a a portfolio you know of shares of different coins you know they were really not very transparent as to how the collateral will work and then when Hell broke loose Mark ended up in in the Senate I don't know if you remember the Senate um interviews which were quite funny because the Senators didn't even know what to ask him and the comments were quite sad because they showed that they didn't understand and So eventually they gave him so much help that he had to stop the project in Switzerland so the coin used to be called Libra then it became DM and then DM is now being um issued in America and he promised it will be back by dollars you know remember the whole history that I gave you was to show you how the dollar became Supreme um and it's still Supreme and they're going to fight to make sure that that happen so to answer your question you stable coins but back by the dollar so the only thing that that that that coin becomes just a a a digital representation of the dollar so so um a JP Morgan coin and a let's say Morgan Morgan whatever Morgan Stanley coin will be if it's backed by the dollar and I proof that it's backed by the dollar will should be interchangeable okay in the same way that you have Visa Mastercard um you know people will choose what to use but eventually the market will be so transparent that you will know which one you can trust you know um how come we all use Visa and MasterCard and not so much diners and American Express you know the market eventually decides make sense yes I think so but I just see a scenario where we can have like a bank we can say HSBC then they will hold five different us cbdcs and and how will they how will they defer between those will they have to choose and say oh I like JP Morgans better than Wills Fargo so we will try not to use Wills Fargo is that much how how will it work okay I need to clarify something cbdcs are issued by the Central Bank stable coins by a private company the two of them totally different okay remember Central Bank digital currencies are obligation of the Central Bank okay so and there going to be one Central Bank digital currency by each Central Bank the difference is that the cbdcs will be able to be interchangeable because it will use let's say they will all be in the ethereum platform for example but they you know in the same way I showed you all the projects they will build Bridges and they will be able to inter interchange the you know currently the technology in capital markets I give you an example the central Securities depository in South Africa cannot interact with the cent of the Securities depository in Euro Clea or CLE stream why because the technology does not integrate that's how bad the pling system of the world is we created complete centralized World Gardens but the New World Order is that everything you build will it able to be interchangeable so so just think about the technology the technology if it's done properly no world Gardens and you use the network effect of for example ethereum then you will be able to use the coins whatever coins there are stable coins Central Bank digital currencies cryptocurrencies in any type of scenario that's why I'm convinced that our children will have an app and they will be able to decide and you know what's going to happen some coins are going to give you interest some will let you vote when when I cover the D5 world next week you will see that many of this smart contracts give you um tokens and this tokens are simply the right to vote you have the right to decide if a smart contract needs to be changed if a smart contract needs to be improved or it gives you rewards and those rewards you can actually trade them and you'll be able to even use non-fungible tokens of of the Mona Lisa that you bought um and you will be able to trade it and put it as collateral to take it alone in in a a which is one of the protocols of the D5 world do you understand what I'm talking about it's a world in the internet in the same way you send emails you will be able to send emails of money interchangeable you know my email to you it's the same email you to me no I receive the email I don't have a problem in the past when the internet was created it was complicated because nothing was talking to each other internets we broke the world Gardens and the world became one in communication and the same will happen with man make sense yes thanks cool excellent other questions anybody we've got 10 minutes speaking of uh clearing if you may on on the companies that you you mentioned the Clearing Houses your clear and clear stream is it just a technical incompatibility with the security depository from South Africa if you if I understood well or is it more than just um let's say technical issue with interfacing screen houses maybe we're missing the the um starting point or we don't have enough understanding of of this know Swift based agreements or what exactly in the current situation in status quo is is preventing this type of exchanges it's not just technical perhaps yeah to tell you the truth I created the central secuity Theos stre South Africa I run it for 20 years and we could not create a bridge because technology and the the Swift messages that we use in Africa are completely different to the one that we had in Euro clear and clear stream we did a project with several csts Central secur depositories U just on collateral to be able to transfer shares in straight to um to let's say collateralize alone in Europe and to put it in the central Securities deposit clear stream just that project of a simple transfer of shares from one to another took four years and I don't think that it went like and it cost you don't understand the money and time why because the plumbing that we invented in the all Legacy financial markets it's centralized with many many intermediaries and therefore it's very very hard to have real time information in the current claming system that's why I don't know if you guys read what happened in America with a whole GameStop side and Robin Hood Robin Hood a simple app that everybody thinks is so magic whatever Robin Hood had to rely on the pling of the dtcc which is the depository and therefore the because of the time delay in settlement which is two days they had to put margin deposits that they didn't have so they had to stop the trades that is horrific and that it's unacceptable and is not existing in the new world we are building so that's why if the Legacy financial markets do not get their act together the cryptocurrency exchanges will start tokenizing all the Investments equities bonds money markets treasury builds everything and they will then allow realtime trading in a blockchain technology real time no borders all in the internet and and that's going to be the end of Legacy stock markets yes thank you can you can you repeat that Monica what part what part did you miss y of the stock market yes because people why would anybody I always say to my ex employer the Johannesburg stock CH why would anybody come and put a listing at a Stock Exchange in Johannesburg that has got all these rules and regulations wall Garden um Antiquated technology you know they use a technology called BDA broker dealer accounting system to do allocations it's 30 years old I think he still has a green screen so the cost of maintaining that because as you know most of the the technology um the old technology you know there's not even um Engineers that know how to use the old technology anymore so it's very costly so why would anybody invest in wall Garden stock Market when you will have cryptocurrency exchanges offering the same um investments in apple Tesla all of the shares real time ER very low cost no intermediaries wallet to wallet and that your shares in Tesla you'll be able to swap with your finger not falling the broker not waiting for um working hours H Sunday morning you're sitting in the toilet you board and you start trading you didn't fund the broker and the settlement happened real time can you picture the world where you're going to be your own fin financial advisor your own broker your one your own custodian bank because in your wallet you're going to have your custody of the shares not sitting in a custodian bank if you don't want to of course codian banks will always have a role for those that don't want to look after themselves but if you want to be free and do it yourself you can and that that's the beauty of this new world order we we are creating but at the end you will have another type of stock market uh the new token Market correct but at the end exactly a new token I like that a new token Mark that's exactly it okay yeah okay we got let's say seven minutes come on people ask me questions all right then I'll go if um if I may um hi Monica thank you very much first of all and um you mentioned before something along the lines of uh cdbc is all working with one another um so I was wondering um that makes a lot of sense because of course we have National borders and National central banks and European one for example and they have to do their own thing and then meet each other somehow um if it even happens more or less in this sort of a way how would you get this you referred to it once or twice but maybe I didn't get what you already said um you need some sort of reconciliation layer right how how do you see that happening is that something that consensus might build is everyone just going to migrate to the the one coin to rule them all Bitcoin which is probably not technologically feasible but then maybe ethereum uh is there going to be something completely different that the whole world will then migrate to or is it going to be fragmented uh um all over the place but still sort of is there going to be a Unison the Baseline question of course is um how is this tension field between decentralization and actually central banks by necessity are centralized how is that going to be Consolidated in your view yeah it's a it's a beautiful question you know because for a central bank talking about decentralization is like you know it's like if I tell you you know that extra extraterrestrial people exist and here's the Maran you know you're going to look at me and say what the paradigm shift is so huge okay that the only reason they doing it is because they have no other option okay so they're using the technology so because the technology is so easy to integrate the project in in in Asia because each Central Bank doesn't trust each other so China doesn't trust Hong Kong doesn't trust Thailand so they didn't go for the model of saying what if we all create a stable coin now imagine if I decided now we going to create a stable coin back by let's say the you know the Yuan and in a bank account we're going to put lots of Yuan and great the stable coin that in this region this is the Central Bank digital currency of the region no that would have been simple but because there's no trust what they all going to do they're going to create their own cbdcs you know the taii the Yuan the Hong Kong dollar whatever and they're going to to build Bridges because as I said this is not Swift messages this is like emails it's the internet can you picture the internet of value and yes they're going to have to choose a platform what we are seeing is that they're going to go for private permission platform but the beauty of ethereum is that you can do private we have a technology called Quorum or you can go public and because you choose the same standards ERC standard ERS for the public or the private moving money that is built internet money built in the private moving into the public it's interchangeable make sense but just remember I just pray that the central banks will will apply the minds to do what's right for the people not for the banks this is the chance once in a lifetime to do what's right for the citizens you know and therefore not like China that is doing this yes look let's give them 100% credit that they um idea of cbdcs are going to empower a lot of people in China that live in remote Villages and and that is also going to have left Financial inclusion but they're not respecting the concept of privacy or the concept of decentralization they're not using the distributed leer the blockchain the using a centralized database blah blah blah so I just hope in the goodness of humanity that the technology satosi brought to the world it's here to be taken and not to be abused but you know there's good and bad in the world so we'll see where it takes us yeah absolutely that's the thing especially these um email messages between central banks that would still require a protocol platform as you say that would be the very nice thing to to see like what what's that going to move towards so well thank you very much for that yeah but and you know when I talk to them the only thing I get from them is fear and I said guys if you're going to be in fear of what you're building God help us what you're going to build you know some some workshops that I attend I just think I just wasted an hour of my life you know it's terrible I have to tell you so um so yes they say you have to kiss a lot of frogs before you find the prince you know so hopefully they'll find the prince you know and that's my role my role in life if you ask me Monica what is this job that you've got you know I should be retired I don't need to work but I work because I want to bring this information to the world because I've seen it all you know and I'm too old I've seen it all I saw the first facts trust me so now I'm hoping that the leaders of the world you know will for once do the right thing you know yeah two minutes to go oh my God because you're falling asleep and I'm trying to wake you and you know it's quite late in South Africa and I'm never awake at this time of the night okay now but I love talking about money okay can you see I love talking about money okay so give me the last question so we can let you go I'm not going to let you go until I get one more question okay anybody I have one more question but I had too many questions so if you guys have question don't for it I love your questions so uh in United States we're facing a big issue about BuyBacks and uh companies bailout do you think um crypto will will help to solve this issue because right now it's a it's a pure U stock market manipulation we see that the company is about to collapse however the company is still going up right for example Tesla stock right is now worth more than Volkswagen Ford and Toyota combined which they don't produce or or on anything so there is also a new company remach right which is currently buying Bugatti for example so that that seem to be a bit weird in terms of financial because it does not make any sense whatsoever so do you think how do you see it's going to play out well I'm s I'm sorry to tell you the truth but you will be able to manipulate things even easier because Rea is pro you know the concept I told you about programmability you'll be able to program anything into the money you know the only difference and that's what I'm hoping is because everything will be more transparent and if you have many people that are actors in the blockchain meaning the nodes many nodes many people that can see what's going on we will get to see this faster um immediately you know everybody will know you know like in South Africa we have have great newspapers we know exactly who's the Crooked politician we know everything doesn't help but we still know you know who's steing you know so that's what I'm hoping that people will be more educated and aware faster um and you know the the reded groups the the groups that are talking in the internet will wake all us up and say people really education is not for the for the Elite Education is for the masses and therefore that we will use social media to disclose when governments are corrupt or markets are are being you know manipulated and that is what I'm counting on I'm counting on education to wake us all up as to what's truly going on okay well at let car on okay hopefully but I still hope you know um that this is the chance to create a better world okay so guys carry on edating yourself and educating everybody else don't be scared of crypto but ask questions okay and being 2101 I finished the class you can all go I see you next week and I hope you do your homework because T5 is 10 times more complicated than this one okay this def is gonna blow you away it's taking me hours to prepare that lecture okay okay our best have a good night bye bye everybody bye everybody bye bye bye