CryptoFinance and Crypto Valley

Transcription

1 CryptoFinance and Crypto Valley Solutions for the Private and Public Sectors Johann Gevers, Founder and CEO

2 The financial system is at the epicenter of a fundamental transformation that is radically changing geopolitics.

3 Finance 2.0 Replacing expensive, fallible people-based systems with cheap, reliable technology-based systems

4 CryptoFinance: The Core Innovation Data, Asset, and Transaction Integrity through cryptographic algorithms

5 CryptoFinance Uses cryptographic (encryption) algorithms to: secure property reduce trading costs enlarge economic network size and thereby: extends division of labor & specialization raises productivity of labor dramatically boosts wealth creation and quality of life.

6 Account-based systems Wallet-based systems $20 $20

7 No settlement required Payment = Settlement Users transact directly: => real-time value transfer => peer-to-peer exchange of value - without an intermediary - without accounts - without liabilities > no reconciliation > no clearing > no settlement

8 The digitization of bearer instruments enables value to flow instantly and at negligible cost via the internet TODAY Debts <> Accounts TOMORROW Asset tokens <> Wallets Payment Message Record Process Reconcile Clear Settle Instant Transfer via Digital Bearer Instruments Value Transfer

9 The CryptoFinance Ecosystem probabilistic consensus systems (e.g. Bitcoin) community standards and infrastructure x slow, expensive, limited scalability, public > secure voting systems, property registries, uncensorable data, inflation-proof currencies, etc. deterministic contract systems (e.g. Monetas) trading parties fast, cheap, unlimited scalability, private > secure, efficient retail transactions, micropayments, resource allocation, internet of things, etc.

10 Best of both worlds Store assets securely in consensus systems > asset layer Trade assets efficiently in contract systems > transaction layer

11 The Hidden Cost of Physical Cash Developed countries: 1 2% of GDP Developing countries: 5 7% of GDP Billions of people are un(der)banked no access to formal financial services (savings products, insurance, etc.) The unbanked lose 15 25% of their savings every year => Why save if the savings will be lost anyway? => The unbanked stay poor

12 What is a transaction? A transaction is a legal agreement > a contract Transaction systems are contracting systems.

13 Standardized Financial Contracts Major breakthrough 5 fundamental building blocks 32 standard contracts cover 99.99% of all use cases Dramatic simplification, standardization, risk reduction, and efficiency gains across the financial system

14 Development of Smart Cities Maximal life quality with minimal consumption of resources, based on an intelligent interconnection of infrastructure (transport, energy, communication etc.)

15 The Enabling Technology: IoT Connected devices in billions By Billion

16 Payments and Resource Allocation

17 Clusters for Development Strong clusters produce more economic growth, more jobs, stronger wage growth, increased entrepreneurial activity, and more intellectual property such as patents than other areas. Harvard Business School

18 Switzerland as Ideal Hub

19 Crypto Valley

20 Zug City Council Bitcoin Initiative

21 City of Zug Wir wollen unsere Offenheit für die neuen Technologien zum Ausdruck bringen und frühzeitig eigene Erfahrungen sammeln. Und wir werden FinTech-Unternehmen der Region Zug zu einem Gedankenaustausch mit dem Stadtrat einladen. Es ist unser Ziel, deren Bedürfnisse für eine optimale Entwicklung in unserem Lebens- und Wirtschaftsraum genauer kennenzulernen. Dolfi Müller, President, City of Zug

22 SBB Bitcoin Nationwide Initiative

23 Regulating Cryptofinance Switzerland Leading the Way Industry consortium that is developing a business-friendly regulatory framework for digital finance.

24 Reasonable Regulation Risk-based Benefits exceed costs Principles-based, not rules-based

25 Proposed Regulatory Framework for CryptoFinance Digital technologies enable more effective and more efficient regulation: Transparency > all digital transactions leave a digital trail Accountability > identify transaction parties via behavioral identity Privacy > enabled by default (presumption of innocence) > lifted for bad actors (targeted investigation) Innovation > regulate criminal actions (harms to persons or property) not persons, entities, structures, processes, or technologies Efficiency > digital compliance measures can be efficiently automated.

26 The Role of Government: Making Switzerland Startup-friendly Startups are the engine of the economy the biggest job creators and the best innovators 1. Reduce hurdles for startups Introduce a cheap, fast, flexible, unbureaucratic corporate form for startups Create legal framework that enables cheap, fast, flexible fundraising for startups Make tax code startup-friendly > no wealth taxes on startup equity Improve employment law to reduce hurdles for startups Reduce constraints on immigration of highly skilled workers 2. Reduce hurdles for cryptofinance Provide access to bank accounts for cryptofinance startups Modernize regulatory framework to enable innovative new cryptofinance business models 3. Build Switzerland s reputation for neutrality, security, privacy, and innovation 4. Encourage entrepreneurship through the education system

27 The Age of CryptoFinance A new era in human social evolution The Technology of Trust The transformation of our world

28 The world s most advanced transaction platform Johann Gevers, Founder and CEO johann.gevers@monetas.net