When the streets of Dublin, Ireland are lined with the world’s leading bitcoin, cryptocurrency and fintech experts, it can only mean one thing: MoneyConf is in town.
The great people behind the Web Summit have flown in the founders and CEOs of some of the world’s largest fintech companies and global banks to speak about the disruption of money as we know it.
As partner to some of the world’s most successful Fintech firms, Voxpro – powered by TELUS International always has its eye on the future of money.
So, we invited some of the greatest minds to join us at a special event at Voxpro’s Dublin centre of excellence and share their vision for the new financial world order.
Special guests included:
- Jeremy Allaire – Co-founder & CEO of Circle
- David Schwartz – Chief Cryptographer at Ripple
- Alessio Bruni – GM Europe of Luno
In a wide-ranging discussion moderated by Robert Hackett of Fortune magazine, we learned many things about crypto and the future of money – here are five:
1. Traditional banks are systematically blocking crypto innovation
“The traditional banks are extremely reluctant to enable the crypto economy to have on and off ramps. If you ask any crypto company what the biggest issue is they’re not going to tell you regulation, they’re going to tell you getting bank accounts. Banks have pretty systematically limited companies’ ability to operate in this space, and that’s really a challenge. And I think part of that is regulatory uncertainty and part of it is just hostility to a technology which basically threatens to eliminate a lot of their profit margin and business models.
And so, I think ultimately, we’re going to need crypto-native banks that work in the crypto ecosystem and can provide that connectivity and can work with the central banks really closely to get through that problem. Because right now there are a lot of gatekeepers that are really in the way of start-ups that want to innovate.”
2. The next big technology companies will be built to support crypto
“The new infrastructure layer of the internet that’s being laid down right now is going to allow a lot of the functions currently performed by the financial industry – mostly record keeping in very proprietary siloed systems – to run on the open internet, at a radically lower cost, and with a much better consumer experience. There are going to be very significant large technology companies built that support that move to crypto finance, just like there have been really big technology companies that have supported the move into digital media and digital communications.”
3. Financial institutions are using XRP as a settlement asset
“XRP has the properties to be an intermediary or a settlement asset because it’s fast and it’s cheap to move. It’s much faster than bitcoin. One example of a use case that Cuallix is using right now is remittances between the United States and Mexico. Rather than having to move that money the conventional way which takes several days and is very expensive, they just buy XRP at the moment they need it and a few seconds later they sell that XRP for Mexican pesos. So you have a remittance pipeline that sources liquidity on demand and you’re not exposed to the volatility of crypto currencies because XRP is so fast you hold it for a minute or two. That’s less volatility than the peso over two or three days and it’s 40 to 60 percent cheaper.”
4. The move to crypto was (sort of) predicted in 1988
Alessio Bruni of Luno reminded the crowd about a frontpage story from The Economist way back in 1988 that predicts a new world currency by 2018. It pretty much speaks for itself:
5. If you really needed to… you can’t transmit money to Mars in milliseconds
“You can’t transmit money to Mars in milliseconds, and that’s a problem. We’d like to have money work the way the rest of the internet works. We’d like to be able to share money and value whether it’s a few dollars to pay back a friend or making an investment in a business somewhere – maybe a new business being started on Mars. We want money to be instant, we want it to be global, and we want it to be free to move that value around, in the same way that we don’t pay anything to send an email or share data or a photo or share our opinion.”
“I think the key problem with money is that it’s neither universal nor interoperable, and you need one or the other. If it was universal and everybody in the world could accept it with equal ease, then that would be fine. And if it could operate with other systems that other people use that would be fine too. If you’re stuck in an island as the economy becomes increasingly global and more and more people want to do business internationally but have to do it through intermediaries and slow systems, then we start to really hit the problems that that system has created.”
Voxpro – powered by TELUS International helps some of the world’s leading Fintech companies build deep levels of trust with their customers. To find out how, get in touch…