Stablecoins Before and After COVID-19

Transcript

everybody and welcome my name is Emil orient and we are going to start or a wonderful event around the stable coins I am going to introduce myself and then I'm going to invite Jerome to share his remarks my name is Emmy as I said and I am the chair of the Western chapter of the CBA I focus on digital assets security and custody on behalf of ledger and on behalf of the CBA I'm delighted to welcome you all at the very first virtual theories and as mentioned we'll be focusing on stable points in the

light of fund amicus as the first time where for the first time I invite you all to be very mindful and if you focus or if you experience any issue during this zoom then please just log in and log back and hopefully your your bong is going to be fixed as as of taking pictures we welcome you to also take print screens and share it on social media and here you see the fabulous lineup of the speakers of today and then here the hosts of the event and of

course we're on Twitter so please engage us you will also have the chance to ask questions later and also please use these official hashtags of the event of today before we jump right in an overview of the agenda I'm going to invite your room shortly to share his opening remarks and then we will have the session one where every speaker is going to share a bit about themselves by the company they represent and how this current pandemic is impacting their stable coin project thank you thank you

thank you very much for this this intro so yeah once again we are very welcome everybody and this first online series of event organized by CVI crypto Valley Association we've all been amazed by the number of registered people so today we got 450 or registered people coming from 65 different countries so for the first test we are very happy to welcome all of you for this first first prize so yes of course commit 19 change quite a lot of things for everybody including CVA we had to cancel all our events including

crypto Valley Conference and now we we want to have to show this crisis as an opportunity to show our rizzoli a resilient our blood channel crypto ecosystem is so our industry has not waited for the coronavirus to start its digital transformation our industry is digital native our industry has not waited for the COBE 19th to start adopting remote work our industry is decentralized by nature and of course it's stuff right nice stuff for start-up for free and stuff stuff for everybody but it will get it will get better and we have to to show that we are already

recovering so today is a proof that the industry is recovering the CVI crypto valley association that I represented as an executive director is going 100% digital with first of all our new members photo we know member to connect and interact and another digital initiative we're launching today is this series of online event so we have we wanted to create something you create something to give an opportunity also to network to network with all of you so after this hours where you'll be able to listen to speakers you will be able to network in

in room something has never been made so once again it's the first time let's hope that everything will be okay and that you will enjoy this networking session before finishing a few words by crypt of an association so we are an independent nonprofit association based in Switzerland we have one mission is to build the world's leading ecosystem for block chaining cryptographic technology in business we started three years ago from Zoo in Switzerland we now have local chapters covering all country all Switzerland and now expanding all ecosystem worldwide so we already have more than 30% of all member base outside

of Switzerland and we currently gather 600 members including 100 and 150 corporate members I hope that you will like this even today and maybe join us I have lots of benefits earning us first of all you can enjoy all these events in the futures you can join workgroups chapters get involved as an active member you can access our our private members portal interact directly get all with all the members you can invite it to speak like today to online events and of course of course get discount you could get a full list of benefits on our

websites but in a few words joining crypto Valley Association will allow you to join a large and strong community to learn connect advocate and innovate in our inner field so membership membership speed starts from 103 strength so around 100 US dollar and you can join online log into crypto Valley that Swiss all the process of course is online and now let the even start to you Amy and to all the speakers that I really sank joining us today thank you thanks Jerome I would say put your hands together for Jerome

but but we won't do that now with that let's kick off the session one where I would invite Joshua good buddy from finance to introduce himself and take the zoom room it's all yours Josh great Thank You Emmy and thanks to the Krypto Valley team it's a real pleasure to be here hi everyone I can see we've got any two hundred people in the room that's awesome welcome sir oh I'm going to introduce myself very very quickly my name is Josh I'm the director of growth an institutional business for finance what I do for finances I help lead the growth

team in a mirror and Latin so any kind of new new jurisdiction that we enter a new product that we launched in the region my team are very much part of that so today I'm going to tell you a little bit about the violence ecosystem I'm going to focus on on be USD which is our native stable coin I'm going to touch on some elements of that as as it relates to Cove Aid and the impact that that's had on our business so I'm going to keep it as light as possible I'm going to tell you as many interesting facts as I can and any questions that you have a forum after this for you to kind of go go one-to-one with me and ask me as many questions as you guys want so

I'm going to kick things off just to talk about finance very briefly I'm sure you know off by an answer if you don't I think my question to you is where have you been we we very much hope that you kind of understand a little bit about our business but in a nutshell we were founded in in 2017 originally we launched a a crypto Decrypter exchange our real kind of USP was the diversity of assets that we offered and the real focus that we had on kind of robust security policies so from 27 where we're nearly three years old now we've diversified our product range we've increased the amount of services that we offer and we've now on-boarded over 50 million users globally so we

truly a global company and we're looking to get even more global as time goes on so as a team we're actually in in 40 countries we by nature have kind of worked on a very decentralized basis some people don't work in in offices they work from home thankfully that's kind of helped us mitigate any of the day-to-day issues that a lot of teams are facing with this Cove advice being locked down we've been we've been remote from day one so that's kind of helped us keep things going day to day about more or less 800 people strong so we're a very very large company now we've doubled in size in the past year and we're recruiting and so quick quick plug on my site if you're looking to get

involved in the blockchain space do visit our job site we are actively hiring in more or less every single region so do get involved with us so I guess with with covert looking down parts of the world and different elements of the economy getting more and more stressed and distressed I guess what we've seen in our world is actually quite interesting a little bit counter cyclical in a way we've seen an increase just in our products and services tangibly what that's what that's resulted in is a real increase in trading volumes we've seen huge amounts of price volatility and and of course an increased amount of users onboarding to our sites as well so that's been quite

encouraging and I'm going to touch on that and what we think that means within the wider backdrop of what's happening right now in the economy um so as a company are our main focus and key priority at the moment is continuing to kind of outreach and provide education on on the blockchain economy and and you know really what what we do what others do whether they're competitors or ecosystem providers telling people a little bit about what the blockchain economy is and what you know what it can do for them so a real focus on on education for us this year is one of our priorities now be USD I know that the main focus of this of this this webinar is is really focusing on on on stable coins so I'm

going to talk a little bit about Bea USD which is our native stable coin be USD is is a one-to-one dollar back stable coin that we launched in in September 2019 we did that in in punching with paxos you might have all heard of paxos they're a trust company based in in New York they're regulated by the New York Department for financial services it's a really strong cut of audit and supervision frameworks which was one of our key priorities when we launched a stable coin product we launched that in in September 2019 and you know it's what are we now nearly eight months old as a product so so we are you know deep into the seventh month of that and

performance has been pretty strong we're very happy with the with the performance that we've seen in the market in wider adoption we as a product be USD have had over six hundred and forty million dollars worth of be USD issued during during the lifecycle the current supplier be USD right now is two hundred and nine million dollars so that for us is is really encouraging and I think it's kind of a mark of really kind of of where where people's priorities are lying you know we've seen that market grow and grow month or month so we suspected this would be the case we thought that stable coins would really

be a key part of the ecosystem that our client base wanted to see and we've been encouraged by seeing the growth of our market cap and we think it's it's definitely something that our users on our global ecosystem are prioritizing um to kind of increase that that that market cap and get that product out there we've got the USD listed all over 50 exchanges most of the leading wallet providers now are compatible with be USD so we're really creating a large ecosystem for B USD amongst as many third parties as possible one of the key achievements we're pretty proud of as a team is is B USD within eight months now is the fourth largest stable company in

the market behind tether us DC and PACs we've seen that kind of quite a parabolic growth curve over the past couple of months and interesting enough in the past too much since the Cova crisis we've seen our market cap doubles so earlier in the year we were about a hundred million dollars market cap 4b USD now we were over 200 million dollars various reasons for that in terms of volatility you would think people tend to use stable coins a little bit more to cash their positions out or hold value in a non volatile asset so we think that that trends going to continue and continue why did we launch BST well as you might have seen biomass takes a bit of an ecosystem approach to everything so we like to build as many products and

services that are complementary and ancillary to each other in in the same ecosystem so you know we saw the growth of stable coins and you know the rapid growth of tether and us DC and we thought well it's a key part of our our ecosystem approach having as many complementary products and services under one roof so the way that we've built B USD with a trusted partner like by Paxos is you know we we really wanted to offer this kind of vehicle for fast and low-cost Global payment so B USD can be used to transfer assets globally within our our user base in any third parties that support it and it can be done on a frictionless and pretty cheap if not near to free manner so that's a key thing for us Global Payments I think

can be accelerated in a really beneficial way for for the ecosystem by utilizing B be USD we also use B us to use a fuel for our our exchange people can use it as collateral for their trading activity they can earn interest on it via our savings product so it's a really interesting way of kind of navigating our binary ecosystem by using the USD is our internal fuel for for our products and services and we also CB USD is a bit of a bridge between the Fiat and the digital world and by bridge I'm going to give you an example of what I mean by that so recently we've we formed a partnership with a company called alchemy in Singapore alchemy pay is is a leading kind of pioneer in the APEC

payments industry and they've got this merchant solution that allows crypto assets to be used with merchants as a point of sale compatible asset so you can pay with your crypto in a shop in a you know supermarket and anywhere that accepts most of the kind of standard payment methods alchemy pay is going to cater to that so we are incorporated bu s DS a a payment asset within that and that's really exciting for us because it opens up it opens up the payments market for us and a way for people to kind of use be USD as a means of payment in the day to day life we also recently launched by nads card which incorporates the USC which allows people to pay using a debit card pay would there be USD so making

the the connection between the fiat world and crypto world even even even easier and we see that as a core kind of theme during this during this covert crisis making kind of the digital world a little bit more useful in people's day-to-day lives so in a minute I'm going to cram as much as I can bear bear with me guys and so I'm gonna tie this back to Cove it as much as I can we see stable coins really being a key part of the upcoming focused public and and government focus on how to kind of help economies continue to be robust between the French government the US government talk about stable coins and how they can be used in fighting the economic crisis you know things like for

example a government airdrop of stable coins is definitely something I think we're gonna see at some point the macro economic impacts of covetous massive we're seeing quantitative easing we're seeing huge fiscal stimulus being pumped throughout many economies and because of that you know governments are running out of ideas and this is going to have a knock-on effect and definitely going to have inflationary pressure on the economy so stable coins in crypto assets we believe will be a key focus and an increasingly important part of the public debate to combat these kind of economic symptoms of these public actions that are taking place now so huge amounts of things to unpack in there I'm going to stop and pause now and we can pick these things up a little bit later on in the discussion so thank

you for listening to me thank you so much Josh and with that I would like to invite Gustav Orientals from the Maker Foundation yeah hello thank you very much Amy and and good good talk Josh I think it was just what three three four weeks ago we in London to get the last time and feels like an eternity ago no okay cool so today I'm gonna I'm gonna tell you a little bit about how the maker ecosystem what stage we are now and kind of like a few the things that happened to us during the sake of 19 and emic so first off my name is Krista I'm responsible

for the business development in Europe from maker last year also helps it up a lot of our projects in Asia so I spend like most of my time between Europe and Asia and this is kind of like where we we see the the inflow of like partners through me to to the mega ecosystem the maker ecosystem we recently hit our live integration with dye as a bare minimum number 600 so similar to Finance I guess in that sense we also have been focusing a lot on like creating an ecosystem Rallos making like a lot of opportunities for dyes and stable coin we also the market leaders within what's called decentralized finance so

basically the financial protocols that lives purely on the blockchain where you can completely verify all the transactions with assets in these protocols maker has a different approach to how we we see and how we believe a truly global stable coin needs to be built we have kind of like taking a lot of the initial promises and like values behind what bitcoin set out to be which was this like global peer-to-peer transactional system you know completely transparent and decentralized and then we have added stability to it so it can be pretty difficult though to add

stability to something where you don't want a central entity to enforce that stability so therefore our model also looks quite different we basically use assets on the blockchain to collateralize our stable coin die so currently we only have three assets we have US DC we have bad and we have eath 'if has around 97 to 98% of the market kept there we however we do see a big push towards moving towards like other and alternative could add all types and that's really something which we are focusing on now as you can imagine with aetherium being our main source of

collateral when aetherium then dropped around 40 percent in a day that really you know put a lot of pressure on the system we managed to come out on the other side you know someone unscathed but it definitely was it has been like a turbulent time for us and really has like enforced that like if you have these collateralized stable coins that lives truly on the blockchain you really need to have a much stronger diversified collateral pool what assets that collateral pool will contain is up to the governance of our protocol we as the foundation we don't take any active decisions in regards to that everything is purely up to the to the governance

community so if you guys are interested in indy supplies governance and then seeing how you know at these like d suffice financial institutions they work in practice then i would recommend you going to forum that make it calm and participate in any other ongoing discussions there's a lot of very interesting topics right now for example one of the things that there was quite a bit of collateral lost in our system due to a congested if they're in ED work and someone beating zero on some collateral auctions so right now we actually for example have like a government push completely by the community in regards to where the people who lost funds this way should be compensated somehow so i think this is like a very interesting

way where like at this different community actually takes like an active approach and decisions towards figuring out what should happen in regards to something that that that went on in the corona x forces an organization we were already around 60 percent remote so it isn't the biggest shift for us work wise but but definitely we we have been feeling it also because before me personally i used to spend a lot of time traveling around Europe all of these amazing event we have here but this has been put on a on a pulse for now and we can definitely also see that the people a little bit more hesitant with with initiating like large projects at the moment and people kind of like feeling this situation out I think I think that's probably it if

you guys there's been like a lot of questions towards mega in regards to some of the things that's been going on lately if you guys have any of them for me then I would recommend that you come to the networking session and I'll be happy to take a deeper look into those there and then yeah thanks for having me on today and thankfully crypts about the Association Thank You Gustav wonderful and as a next speaker I would like to invite Aleksandr scherbakov from Duke us coffee are you on Alex yeah now I'm on just for good yeah that's does the trickiness of

such conferencing it's a great pleasure thank you Amy to be here it's a very interesting and intriguing experience when you physically do not feel the presence of more than 200 people surrounding you so it's like a kitchen talk in a way we just which is really great yeah so my name is Alex tsukamoto I represent the cascoon Bank I'm responsible for feedback projects at the bank I will start with the statement that our general position will say of the Bank is the peaceful one because we believe that and we trust that it is possible to integrate crypto world and

the traditional financial world in one peaceful partnership and we believe that with our background and without projects we make a step towards such such peaceful partnership so yeah I will just quickly make the introduction of our business model and then I will spend more time on speaking about our stable point project and our crypto initiatives in general so regarding the bank Lukas Kubik has been on the market for 17 years 10 of them as a bank our core business over these years was one my

brokerage with all its complicated sophisticated IT infrastructure like electronic platforms API is try and communication network so in fact years ago being a genuine feedback business far before this definition has even been applied or became became popular so a few years ago we leveraged our experience and our expertise in financial technology to develop digital banking ecosystem and today we avoid the clients basically within a few hours so Amy could witness that and we do it fully remotely using our in-house

developed video identification technology which really makes our account available globally and as of today we service clients from more than hundred countries around the globe and around two years ago we also realized that thanks to our created infrastructure and also have experience we can do some interesting projects in crypto and this has brought us to becoming the first bank with a crypto token on the public ethereum blockchain we named this token Dugas cui you can look it up effectively it was not a stable coin but rather a free-floating

edge of instruments that became part of our marketing and referral system so if you today open an account at the bank you will immediately get five tokens that you can either sell immediately the internal marketplace or external exchanges where it is listed or you can notice what you may use it hold it accumulated for the future use for example to participate in our staking program so closer to stable coins after the successful launch of dukkha square token and the trainee we bought from from that because that was quite challenging to pair the traditional

banking environment and track their requirements regulative requirements apply to the capital for example reservation with the reality of the blockchain technology so we successfully did it but Lucas coin and then we focused on our core creative project which is the stable coin and which is now pending approval from the regulator so I will briefly tell you about about the essence of this project so with this initiative basically we are trying to address two essential witnesses of the stable current stable point marking so primarily I'm speaking about reliability

and trustworthiness of issuers that basically control they create a Fiat commercial mechanism and the second issue is the transparency of the Fiat reserve that begs the stableboy and unfortunately for the stable Cornetto system and the marketplace we already witnessed they had pleasant scandals around this topic raised by a no transparency of the reserve so in the case of the Kisuke bank the stable point will be issued and then managed strictly within the Swiss banking ring with the framework and the control of regulator we also intend to publish online the up

to date composition of the reserve which will make it and all the changes in the reserve which will make it fully and unprecedented which was very comparing to what appears our stable minutes Alex yes I'm getting close our stable point will be one to one currency factor C 20 token which means that it will be usable outside the bank from the beginning on popularity blockchain and we plan to issue as many instruments as the number of currencies that preparing to support inside the bank and this number is so far 23 so basically we will have 23 stable coins each Bengt one to one

against the respective fear the bank will guarantee the crypto to field conversion and it's important to note that we will only buy and sell the coins directly from the authorized professional partners which can be other financial companies which can be crypt exchanges for instance so now we're in talks with the DOE zone of large crypt exchanges and we see a very positive response from them and the substantial demand to the token and I can finish my presentation my introduction by saying that I see main interest and people here with interesting ideas present today so

I'm using this opportunity to invite them to speak to us about the potential use for stable points that they may have we are open to any any interesting ideas thank you thank you so much Alex actually put your hands together for Alex and Martin Berger is our next speaker from Signum Martin the zoom room is yours hello everyone what a pleasure to be here today I think prior to Kuwait nineteen it was impossible to imagine an online event it was impossible to imagine that the onboard clients digitally many many things were impossible and now we see during a

crisis that many things are effectively not impossible if you are forced and I think that's kind of be something that I also see in the crypto space you know three years ago many things were considered to be impossible that the crypto and poaching technology cannot master that and now more and more we see that it is happening and I think that that's great to see and this also goes hand in hand with what Jeremy said we are decentralized by Nature and I think people start to realize that these decentralized world has a very bright future so very happy to be here and very proud to be here as a representative for sedum Who I am I'm Martin born here I'm heading the the client side of Signum so basically addressing all the clients

need to decieve from our banking clients we see them and and of course they are not yet as famous as as - but still I think now or the last couple of months many of us got to know us we are the first each bank in the world so we felt that there is a big need for fully regulated digital asset banking and that's why we kicked off the Seagram project in 2018 and we managed to obtain and the banking license which was also considered to be impossible in late 2009 teen so in August 2009 be obtained now if we talk about digital assets or in signal we see basically two big pockets of digital assets and it's

it's also important to have the it's in mind when we talk about stable coins so one of the buckets are cryptocurrencies so with in civics even we allow people to invest into crypto currencies like Bitcoin aetherium and and they see a big median I think now due to Kobe do you see an even bigger need to diversify into cryptocurrencies because yes and I also saw it in the jet like quantitative easing is something that worries many many people and I think how can i hedge against connotative easing it is difficult in these times and we see that like gold for those digital assets and the idea of those seems to resonate in these times and there is a lot of demand and the demand has even increased since the

outbreak of Kuwait 19 then on the other hand and we also see the blockchain technology to be a very efficient technology to issue financial instruments and this is the whole tokenization space now the ditch the swiss franc the v issued if in signal is basically a settlement and clearing token so you need to mention that if you want to sell it organized as to an institutional client you cannot say this equity has a price of 0.039 bitcoin per share no institutions they think still in field currency and if you want to have a marketplace for tokenized assets this marketplace needs to run and

denominated in in a fiat currency and swiss franc in a US dollar or likes and that's why we see a big need for stable coins for settlement coins in the context of tokenization and whether this is to distribute dividends where the piece is to run a marketplace there is a big big need and there is a huge efficiency game if we compare for example a settlement process of an equity traded on the blockchain on on a digital edge as compared to the traditional financial world so very simple case for this if you want to buy a US equity today it takes the t plus two til it's settled and if we are

buying a tokenized equity against tokenized swiss franc it takes on the theorem chain to two three minutes so we are getting a couple of hundred times faster than what we see and today now what do we see has changed since the Kobe 90s in terms of stable coin amount and what we observed is that customers they become increasingly worried about counterparty risks so many people approached us and asked what kind of counterparty risk am I facing with each the Swiss francs is it possible to design a stable coin and which which do not bear any issuer risks

and I think for us whereas the current stable call that we issued and is primarily a settlement in clearing coin for tokenized assets we are now having concrete plans to issue a stable coin and as the bank where you do not face any counterparty risk and I think this is really an increasing amount letters people are all worried a bit about the negative interest rates prior to Kobe 19 I think they are now really worried about the system as such and apparently also and about the the counterparty risks that they face if they hold fiat currencies and this is a bit how we see Martine wonderful I thank you so much

putting my hands together for you and with that I would like to invite or I know Solomon from Mont Pelerin to present his perspective I don't thank you very much Jimmy hello everyone and thank you for having me here I'm almost a moon I'm the founder of an empire being originally my background is engineering but I did all my career in finance mostly as a trader I discovered Bitcoin in 2012 and this is pretty much something that changed my life and my perspective in life the company that we're building is actually a new kind of financial institutions today we are very much focused on the

tokenization aspects our customers are mainly financial institutions as well as thought ups we were actually back in 2018 and after 2018 the first company to actually really tokenized a share of a company and that is actually something like a big deal because at the time there were a lot of initiatives trying to mimic the shares but there were not legal issues so they were like in in the form of a private contractual agreement trying to limit of shares by printing future rights on the dividends by granting some options to Bhatinda tokens to be product to here shareholder structure etc etc but it was not really legally binding and what we

did by tokenizing the shell company is we need to make it one the token holder is a shareholder having all the rights and the same rights attached to it so he has the economical Dreyse trivalent and the social rights to vote and he's actually the owner of the shares and therefore he's protected as such by his whistle and not only by a private contractual agreement so this was already like a first really big step we believe for the entire industry obviously today this is a concept that we've replicated from C control be in a very easy way it takes only couple of days actually now to do that for any company and which really believe that in

the future most of the companies will manage take captive on chain there is one thing that is quite important our view is that tokens are not a new asset class tokens are mostly a new technology will be able that can be programmed to behave exactly like how the underlying is not currently within this centralized or banking systems and this is actually everything we do right so because this is quite important to understand the difference between the crypto Lake Bitcoin and a token a crypto actually has no proper issuer it's a just an open network for everybody to join and this is actually game changer

but when it comes to tokens there is a well identified issuer and it issue I can believe a hierarchy whoever but then there is well identified issuer here that has to respect the certain rules because he can be finger pointed if something goes bad and that's why we have created something that were quite proud of we call it the bridge protocol now it's the v2 and this bridge protocol is actually a compliance layer that lives on top of a theorem that is basically a rule engine and a user registry and the idea is to go one step further from the whitelist concept but some tokens are applying with respect the lifecycle of such tokens to respect

the fact that some tokens are only distributable to accredited investors some tokens can be distributed on into restricted geography etc etc but the idea is to go one step further and to boom way more refined in the type of rules you can attach to the tokens to really mimic and replicate exactly the existing regulatory framework and we believe this is a good thing because today in Switzerland Switzerland is a technological neutral country so there the approach is always like that and therefore when you speak about blockchain with the regulator's today you can speak of it as the Excel 2.0 and as long as you can show that you can enforce the same rules using the concept

of compliance or apples for example and then you can actually make things very interesting and at the end of today all banking assets all financial assets or contracts and by incorporating them into your smart and smart contracts and and actually coding the same rules that were actually applied and enforced centrally today you can actually delegate that to compliance or apples or you can be yourself you on compliance or and you can restrict the transferability of such turbines based on rules such as amount amounts of reloading period of time the type of investors you want restricted so if if it is only distributable to accredited or if you don't respect me food rules

for example to make sure that the investor has the correct risk profile with regard to the underlying assets etc etc and the beauty of that is that actually the issuer creates a reel and within this reel the entire compliance logic is aggregated so let me give you an example if if you speak about stable coin for example you and single issuer can issue the USD token as well as review row token but that should not mean that it will double up the limits right so the the idea is we need to aggregate the positions of a single reason for the same issuer so that you will be always respecting the same rules

in the future then today the paper and the like or actually enforce so we believe this is the real game changer to this industry but now we go one step further because obviously this is quite geeky this is smart contracts and that's the the goal is to create note from that so we have created front-end for anyone to sell the issue any tokenized asset creating rules and plugging the treasure on the website and actually deploying those for contracts on their own totally for free because this is an open source protocol and now we have created as well as wallets the wallet is here also to be able to be connected to different compliance or at all so that you can manage the lifecycle of such

security tokens as well as being able to exchange and that is actually something we believe is the missing point of today is the will truly decent revised exchange most of the decks that exist today they have some social parts they have some components where you have an operator you have an administrator you have someone taking keys etc and I'll review the concept of her books the concept of an exchange is outdated today the concept is that on one side you go and deposit the cash on the other side we deposit the security you can trade there is a settlement and then you can withdraw and get back wash it we believe that within the wallet it should

be different within the wallet actually there is no concept of depositing it and withdrawal it's just like you grant an allowance to a small conference that will behave and that behaves actually just like another book it's actually like so it's just to note a book it's just a small hundred a small contract with a matching engine and now you can grant an allowance to the smart contracts and you can put orders and only the one match and only one there isn't much there is actually peer-to-peer swap happening from what its wallet with notoriety involved with no operator with no administrator of such country it's just food that sells for itself so that's in a nutshell what we are working on and and product that we have

of course our project is is a long-term project we are in of course we will in being licensing facing very interesting innovation to bridge the two worlds thank you or note wonderful and I would like to invite Ilya Volkov as the next speaker Ilya the zoom room is yours thank you Amy hi guys so my name is Ilya Volkov I'm the CEO and co-founder of ler we are a fin tech platform focused on keep the break cleansing with fiat and stable coin loans clip the - Fiat clip

to clip the conversions as well as keep the saving accounts we support all major cryptocurrencies and tokens it's so stable points we already support majority of them like use DT is DC Park sauce box was gold to use D and some others we plan to finance stable coin as well and probably die soon and of course we'll be happy to consider adding a coin from signal and coming multi currency stable coin from Dukas copy so if so stable coins our users can use them for two main cases first for payments and second for savings so yes for payments and they can get keep the back loans in

stable coins as an alternative to traditional Fiat by the way we have all major traditional payment systems integrated like like bank wires like credit and debit cards but the interesting point is that up to 60% of payments are being made in stable coins so as for savings or interest accounts who pay up to 12% and all the unstable coins stable coin savings as you can see we're an active member of clip Tavella association and we are one of the initiators of this conference stable coin as we all know are definitely a very hot topic today when thinking about the idea of this

conference we noticed that during the time of the corona crisis stable Cohen stable coins evolution is speeding up and use cases are increasing so for example if before the crisis it was just a payment option keep the hedging instrument now it's also tool that can fight the inflation for example speaking about us we see some uplift in demand for interest accounts and some specially created tools like we have specially created went into called multimodal so as for use cases how could we fight with inflation's with the stable coins I believe we will have a lot of time

during our panel discussion so I see that we are maybe trying out of time so that's it for the intro let's jump in and to the discussion guys wonderful Ilya thank you very much we did built in a bit of buffer so don't worry that we are a bit behind schedule I would like to invite people to welcome everyone for the panel discussion and to kick this off be bada-zoom room is yours I am very happy I'm very happy also to have so many participants we have almost 250 participants with quite amazing so

the idea as you may know I'm the chair of regulatory working good so my questions are sometimes really related to regulatory but we have to try to enlarge as much as possible the discussion the first questions and you might have seen already on the invitation is about the youth needs of stable coins and marking I'm gonna speak to you and ask you first about it because what I found very interesting in Signum is that you have cryptocurrencies tokenization and I the tokenization you use those for the settlement going which is a bit different from what has been offered

also today so can elaborate more on that and how so the use cases can use can be used maybe before then they will not be used in the same times after the crisis so maybe several uses yes thank you very much and absolutely I think and I think we will see that these emerges now also over the next couple of months and years I think important to say that there is not one kind or one purpose of stable coins I think it's very important to see that there are many many different use case for stable coins one of them yes is clearing and settlement and and I think as a clearing

and settlement coin I would say Cove it has almost no impact on the product to be launched now however yes I think Kobe showed us that there are some generalities in the in the financial statement as a financial system as a whole and I think out of that I think we will see innovative ideas on what kind of stable coins can we develop to like fight against threats like inflation against quantitative easing about like overcoming cross-border limitations in payments I think this is clearly something that you see I'm out of the the Kovach crisis and overall I think

it's it's a very bullish for stable coins so and I think Kobe weed was almost a gift for for stable coins and decentralized community and and so I think we will see many many developments over time now I think yes we mean if in signal we see there's an opportunity I think many others here share this view and I think we will see that there is a lot of innovation coming out of these crises on how to build a better infrastructure and better coins than they have right now and I think one of the use cases that I also see which will emerge and now over time is basically we say today and we have a stable coin and

when we talk about say because many of us has stable coins with a reference currency in Fiat in mind but I think you'll also see with new protocols coming out that there will be an emerging needs for stable coins for example denominated in Bitcoin so that you issue a new protocol you issue and something which represents one the value of one Bitcoin so that you can build Marketplace's and probably more scalable and motivation protocols than the protocols we have right now to develop that under security afterwards just I think it's also interesting because you before that you were trying to do a full ecosystem and how do you see the use

cases before and maybe after the crisis when you have a whole ecosystem how this system can measure up against the inflation for instance yeah so I mean so we're by far the most used stable claim within what's called a decent life finance and I think this applies finance is also like proven I mean of course there's like two sides of the coin right there's like the people who is supplying stable coins including tiniest DC to people then basically lending those stable coins borrowing those terrible coins to use it you know 40ml for leverage trading so there's like two sides of the coin where I think the ones

supplying stable coins during these times they've had a blast right because interest rates went really crazy and stuff like that so a thing unlike the personal finance side and like the more like like a little bit less risky products such as you know like the the staking aspects of stable coins where what is widely popular has really manifested itself as something that you know is also works even in times of turbulence and then we've also seen quite a bit of activity going around like people trying to use you know die for for what what it what it's good for and and I mean the same applies to all stable coin it's really good for like cross-border transactions we before the

crisis we've done several pilots around the world some of them production-ready even I would say the biggest one is probably with Oxfam which is a very big UK NGO we basically have for a long time has been using die as like a way of sending disaster aid to the Pacific specifically in a small place called Vanuatu so in the South South South Pacific Ocean so kinda like checking that use case and something that you know has been proving and done several times in the past we have then also seen during this time so we actually we had a project in the Philippines where people were sending dye from all over the world to donate into you know covert 19 you know you

know gear or like you know like masks and stuff like that and managed to actually get that out earlier this week yeah so I just send a coin desk article that outlines what we did with Oxfam I think that that's the first one we have we have a follow up the stuff we did in the Philippines we haven't made any announcements around about it yet because we we work exclusively third parties so like most of the stuff that we do is not done by us but done by people who takes our

technology and then dust different things with it so most of these things is done you know with with third parties so we kind of like take the pace of their development but but you know a lot of this stuff we we also release on our Twitter so if you follow us on Twitter you can kind of like stay up to date with it and there's one thing which will be a pretty big event that we are that we're doing here this weekend actually we expect so it's a it's a FIFA tournament benefiting the Red Cross in Buenos Aires in Argentina and the viewership they expect is around 50,000 people and they're the main currencies that will be donated will be in dye and Bitcoin if you're interested in looking at that I'm sending another link in the

chat now as well but but these opportunities kind of like really like came up because of this happening I wouldn't lie and say that covered 19 has been you know all like just a dad and some roses for us and just you know all pleasant it's definitely been stressful as well but we definitely have seen that some of these things here where people want to utilize stuff then we are very happy that for a lot of people then then dies disabled kinda what I use this use for this so Thanks when you were speaking about having people reducing wanting to reducing risk I think I'm gonna lead to the second question with well you all know which are that how do you see the

his at the moment for the consumer for the Sybil coins we are all aware that the I use coffee pot that was issued a few weeks ago then yesterday or two days before we had the FSB consultation paper many regulators or some students are speaking about risk consumer can we reduce them can we eliminate them how do you see that thank you so I think on this would be joy Morton its comment about counterparty risk you know at the end of the day when we speak about theater ttusd it served its

purpose extremely well and and and to be honest it was also a good driver for the community but at the same time we see that because this thing is structured in a way that people are actually selling their hats in order to buy betoken that contractually can be redeemed etc but that is not indeed a balance and it makes it quite difficult for the regulator's in the world to understand exactly what it is and the problem now is that because theater is also freely transferable talk so I mean like anyone can get it and then you can use it as a mean of payments with a stable value tag

to the dollar it means that at some point it might be used in the darkness it might be used even to do even worse things such as terrorism finance some like bad things like that and what will happen at that point in time when the enforcement will come if they were not able to actually see the single person that was doing the bad stuff they will seize the reserve and therefore for one bad actors the entire community would suffer and that is where we see the biggest drawback was that and that's why we believe that the approach for example that Signum is having today is is the curriculum because as a financial institution you are actually maintaining the reserve and that's because you're maintaining the

reserve you also basically maintaining collateral as what within which limits they have to actually make sure that the cross product rules are actually tackled they have to make sure that whenever you reach the certain thresholds you need to document the origin of the fund you need to document the clinical context of the transaction you know it's called AML and when you reach all the thresholds you need to document as well the physicality and to make sure that this money has been indeed declared in the home country so that's why I you know we came up also with this principle which is that which is a set of rules so that you can say for example up to $500 a transaction and up to 5,000 over voting period of 12 months it's free of any kind of cable

you see because we space approach the financial institution is comfortable with that when you go above those thresholds then they need to start having two simple key ways and then they need to trigger the AML and do this documentation and that's actually you know but making this link between the unchain world and the object and when it come to Fiat peg tokens that's actually the drawback of it but that's how it should be done if you want to make sure that it will leave over time will not face some regulatory concerns in the future now when you look at the die for example this is beautiful the die is actually something that changed completely the operating of the stable coin industry because now it's

actually a community based coin it's not something that is centrally managed and enforced by someone it's not something that can be shut down by authorities it's actually mimicking what Bitcoin was ever wanted to be in in the first place but having this stable value face to the doors to the door and that is where we believe that it's going to be a real game changer the die and potentially other type of tile effect on other currencies for the real decentralized finance in a completely other other way imagine I was thinking so this is really this annual in a compliance way but as you

were also now licensed as a bank you must have really low risk appetite when it comes to consumer and consumer risk in terms of IML but I think as well not me fee but all this protection for customers how do you deal with that do you since tobacco would reduce the risk absolutely and of course as a bank you're always a very course or not reaching any of the many dolls we have in Switzerland that's absolutely right and of course and we need to have a reasonable but also limited risk appetite just to protect the reputation of our bank and of course also of the

whole financial market in Switzerland now for example if you look at the digital Swiss franc reissue it's currently closed so it's not the same it doesn't operate the same way as Teddy for example so it's a white listing approach should we follow exactly for the reasons you mentioned that we need to comply certain email regulations I think it's something that you can overcome and of course you're also working on opening up the system but yes I think if you want to do it in a very regulate day ending a very compliant matter and it's something that you need to be very cautious about now maybe just about risk and I think there are many risks and I also share very much the view of Arnold at home so I think yes

one of the key risks that you face basically they need to trust someone so many of the stable coins that exist they depend on the fact that you trust someone and I think this is a very interesting use case I for example be because it's like more trust less thing and I think this is quite quite a nice coin and quite a nice idea of how we can overcome certain challenges that we have otherwise with your stable coins I think and of course we did very very detailed risk assess when we came to our stable coins nothing there are other sable coins all the risks associated with stable coins like for example you have a technology risk like for example what if you have a high

network congestion who is responsible for the fact that you cannot transfer this particular coin in this particular second these are questions I think that we will see that they will be discussed more and more intensively I think when we talk especially large institutional clients who want to trade in stable coins these are questions which are relevant is it 1 minute is it 1 minute and 30 seconds still it something is confirmed and transacted and it's something that we as a bank cannot control we can only control our infrastructure we cannot control the public infrastructure and that's also something where the current law is not adopted a because the current law always assumes that someone is running infrastructure and that's an interesting reasons kind of thing but we also

consider bees for example what happens if you lose your digital coin and and the underlying blocked coin is still available so the the risk of theft and loss of the private key effectively how do you deal with that if the private key is lost do you also lose your eyes to the underlying asset or are there somehow recovery mechanisms embedded in the design of the the coin and I think these are questions which we need to think there probably not and I think many of these risks haven't been thought through through at this point but when we come to institutional adoption these are very very important risk and I think when I look at the current stable coin space I would say the stable coins that

we see right now they didn't never go through a stress scenario and I'm sure that when we see a stress scenario we will see that some of them turn out to be not resilient to stress or not as resilient as we probably consider them to be at this point in time you all say them it's it's quite a new a new category of facets at least so it's it's coming this time and I will go back to any immediate a question now just I've seen quite a lot of questions absolutely

I really like the question of jowl so I invite Raleigh to please unmute rural so he can ask his question live and sure a you're also welcome to turn on your camera if you want to say hello and ask your question hi Cheryl hey yeah yeah we do okay cool so my question is regarding algorithmic stable coin I wanted to ask what whoever the panelists is is going to answer this what are your feelings about the viability on purely algorithmic stable coin especially with in the near future

and also what is the potential impact if somebody can create a successful algorithmic stable compared to the market right now which really doesn't have that so let's do whoever that is entering I want to take the first question I can take it so I think one of the biggest challenges of an algorithmic stable coin is of course that also was mentioned before is that these needs to go through like a stress test right you cannot have something that would work in like 99.9% of the time you need someone something that works in other wasn't the time and and I just know from from us you know like when when mega has been built out I mean having to calculate and

think about every single each case it possibly is even when you have systems that are much easier to kind of like understand and and and apprehend that that that that is already really really really difficult when you talk about just decentralized stable coins right where you even will have like collateral backing the stable coin if you then move towards algorithmic stable coins which is where you will have two people who doesn't know it like algorithmic stable coin is this a dear of a stable coin that is not backed by by value but rather backed by its ability to change its behavior depending on supply and demand so it just makes it like infinitely more complex and you know we we all so saw I think basis was probably the biggest what can you say the biggest

contender it's your being able to do this did they raise more than a hundred million dollars but from like one day to the other days shut down the project right and and there's been a lot of speculation about it I don't have any like deep insights into what exactly happened but I mean a theory could be that you know basically the regulator's went in and told them you know if you guys launch this project yeah I mean we we have to do something about it right because it's very very difficult to figure out if it can actually work so I think if someone is gonna launch something it has to be done kind of under the radar and pick up traction before the regulator's can kind of go in and try to shut it down but I I think it's it's very difficult to imagine a scenario right now where an

algorithmic stable point would be feasible thanks very much for your intimate of course well if next we will take a question for finance and I invite nfm the mysterious nfm to unmute himself right now you should be able to unmute yourself if then that won't work then I'm going to take another one by by mark grant mark we are going to

unmute you so you can ask your question live Roli please help me in unmuting mark grant because I don't have that right okay then in this case we are just going to read the next question and that is to Josh so the question is from nfm and he's asking what kind of collateral does bi'ness USD token has I guess he means the BMB when Fiat collateral that was it

and can a financial breakdown affect stable coins collateral okay so to take the first point I guess so be USD which is our native stable coin is backed one-to-one by the US dollar so the way that works is every single be USD token which is an etherium ERC 20 based open every single token is backed one-to-one by dollars sitting within the Paxos trust account so everything's held on trust with Paxos so they're they're backed one to one so the collateral itself is the US dollar sitting in a bank account the way that the trust

system works is and this is under the the New York DFS rules that financial services is that the the holdings ie the collateral have to be audited on a on a regular basis so in a way you can almost all this real-time but but the rules are a little bit looser around that but the the amount of assets and circulation have to match exactly the amount of dollars sitting in the reserve account so that's how the collateral works to ask to answer your question on on whether a an event of some kind a distressed event could have an impact on on the stable coin I'm not entirely sure what you're getting at there but I'm

gonna try and read into it as best I can I'm assuming you're referencing some kind of issue that affects the underlying collateral in in the in the example of dollar backed dollar collateralized stable coins hypothetically yes if for example the the asset that is backing that stable coin D values violently so let's look at maybe what happened in Mexico in the 90s where the peso devalued extremely violent near during at some period of time you're seeing that in Argentina as well more recently where the senior pesos devalued if that is the underlying collateral of

the stable coin of course the oval you know the value of that stable coin which is pegged one to one will of course be being impacted and so where you have these larger macro events that have an impact on the asset that collateral eise's the stable coin naturally that will have a detrimental effect on the value because it's pegged one to one that's just the nature of the stable coin the the asset that the backs it the collateral that backs it the assumption is that that asset itself is stable hence why it's a stable coin would you peg a a or would you choose to peg a stable coin to extremely volatile currency like the venezuelan bolivar maybe not but you know it's certainly an

option so i think it's important the point hopefully you're making is the underlying collateral that backs these stable coins has to be stable because otherwise you're having an asset that simply tracks the movement of an another volatile asset so these structural elements have to be definitely borne in mind when you're building these kind of stable assets thanks Josh great the link between what Josh said and my question to Alexander because one of the the third question is actually how do you how do you think stable con is going to play post crisis and just said exactly that

the underlying collateral can be really impacted if big one to one so what is your your appreciation here annex thank you thank you yeah the first part the first question I in my opinion the squabbit crisis basically just reinforced and enhanced the trend that has been there for years and the trend was to to state that the brick-and-mortar banking as in living for four centuries it's coming to an end and this is not a new trend all the

banks even would say the most established banks they realized that they need to switch to more digital channels and this is what happening and definitely after this crisis as we see a video from around the world and the the strict rules that people cannot get together and the result that people cannot also work from their offices so they have to work from moon well then they came together will have a clear impact on more on getting to him to more digital channels using digital channels to but say even more bigger extent than

it used to be before before kovaydin before all this chaos as and yeah and also about about the impact on stable quest and the role of stable coins I think that a far more essential impact will be played by the this global regulatory initiative that we see now in IOSCO document and in SP document so basically if stable points will be considered financial securities on the principle same risks and regulation then the future of stable points will be

substantially more limited than have without then if say Damon see this classification as payment tokens we'll continue to exist and if generally tokens like the Organization issued or the s that we plan to issue or other tokens that out there if they will not be included into this regulation as financial instruments so that will have the major impact in my opinion I do support more regulation but if it gets to the level which is described in these documents I think that the future booth

would not be as bright as we all here expect quite heavy and we are going to actually this is this is related this is this is definitely related and I think that the effect will be much speaking about the collection to me and we of course evidence before at the cases of substantial jobs in the prices of assets in prices of currencies returns and evaluations is critical that the management of collateral and the collection Lesage the reserve would be

subject to strict regulation because definitely if there is no proper regulation in place then there is motivation by the issuer of the token to get into some let's say unethical behavior or behavior which which would not be possible under under strict regulation so regulation should definitely help make the whole story transparent and help investors will make investor safer during this high volatility periods yeah I think the discord yep is being paper armor from the macro position you have of course

table comes race the same the same question in terms of EML also micro with the consumer but the fact is that they also raise a more generic question like in and I just wanted also to to ask about it's the our fourth questions and if you can jump in I know we are very short in time please try to do it very in a short time I think inflation question is really very very important because you know we will see in different local cases with inflation in different countries but due to Kobe 19 I'm afraid we will soon I will see a new animal called global hyperinflation so and I

believe that crypto and stable coins could help us to endure this potential hyperinflation scenario so and I can just briefly give you two examples here so first deep there's a store of value and second clip the carry trade so as for creep a store of value we all know that very popular asset as a considered like a safe haven asset is in gold right yeah and we only have some number of people's based on gold like parks has gold for example so it has the same benefits as traditional world and knowing issues with storage and transferring right another example could be multi currency stable coins community stable coins like coins for maker or

coming coins from Lucas copy so as for the second example I mean feature phenomenon called keep the carry trade like many of you know I think the carry trade strategy it's not a new concept using low yielding currency to find a high yielding investment was a successfully used in the traditional markets for years so for example take a look back to 2004 2008 during this time interest rates for example in Japan we're down near by 0.5% and not moving so meanwhile Federal Reserve in the United States boost the trades to 1 from 1 percent to 5 and then even more so investors don't borrow TM

to fund their dollar based investments they are dropped 20 percent again the dollar and large profits were made so today we see many banks with historically low entry straights and keep the traders now can take advantage of this carry trade strategy applied to crypto market so technically speaking simply traders can exchange their let's say cheap Fiat for stable crypto and use it for keep the saving accounts and and different reasons and maybe last thought here is that it's the traditional feedback stable points like dollar backed or euro or friend back

they can play an important role in feeling market with the liquidity of course with their important note hundred percent transparency and hundred percent pledged over assets you know just a with additional leverage on Federal Reserve fractions but I think it's more about committees feedback are too fair as bad paper yes the question I selected us next unfortunately she's not she left however I would like to read her question and ask and ask this from you guys and basically this is from Blanc

suta and she's asking during the speaker's concerned with yesterday's g20 FSB as in financial stability where its announcement regarding the stable coins so as being seen as representing sorry as being seen representing a threat to the global financial system so what are your thoughts everyone maybe no Josh you want to yeah yeah sure um I think in short answer the question that we concern no I think if you look at the the report in in the wider context it said a lot of positive things it

acknowledged the fact that for example stable coins can help increase efficiency in payments systems who can help reduce costs for global transfers it's said that there are in parrot kind of efficiencies that the blockchain technology can bring to the existing traditional financial market system to send a lot of positive things but of course it did identify a number of concerns and that related to the lack of regulation as they believe it at a global level as that relates to stable coins from our perspective you know we've we've been in this able coin space for a while now as a as an exchange

listening stable coins we obviously have dipped our toe in and listed in our own stable kind be USD recently and because of that you know we have a pretty good understanding of the the different approach that local regulators take to stable coins and to say the sustainable coins are not regulated it's a bit of an unfair statement because they are in in many countries they are electronic money digital cash and those already fall into certain existing frameworks what is missing is a goggle or pan regional regulatory structure is that necessary I'm not convinced I think each local regulator can take their own approach

and incorporates their book lines within their existing financial regulation but do we see the FSB report as a threat the same no I think it will sparked debate as it has hid and I think that you know it will probably be put in the context of existing regulatory work streets that are happening locally and regionally whether that's asthma in Europe or the FCA in the UK FinCEN in the u.s. they've all a pined already on their view on stable coins so I think they're kind of treading slightly old territory there it doesn't represent a threat or a material threat at least in our view Thank You Josh I don't know you want to add something before we take the other

question yeah well I actually I totally agree with Josh I mean we don't see that as a threat either to be honest if you read it carefully it's not that bad actually so there were a lot of news with headlines that were kind of scary but at the end of the day two before it is not really state that that it should be banned or anything like that if you look at it they were there is for example a model that we didn't speak about yet which is the model that becomes whistles a try to stable point the way they designed it is actually to have the pond that has your yield and that hasn't finished maturity yeah and it rolls over monsunos

it means that when you took a nice such a bond you can mimic the fact that it's a stable coin whereas it's a financial instrument it's just security obviously that's why it's hard to be listed so - cannot list such acts nature because obviously in the security is the real type of license to need that kind of a stable coin but at the same time when used on the peer-to-peer basis that actually served quite well its purpose of course you have to trust that the bonds can be redeemed at any point in time but we believe also that because this is a very trusted company here it's quite a long time a lot of goodwill so that is also an interesting model and not actually follows exactly the strict

rules that exist today every company has the right to self issue bonds and that actually is something that in this report is also stated that when you follow properly the rules that that's actually working quite well I also would like to come back to the app to the previous question that Josh had because I believe that some some part is about the risk and the risk also of maintaining a reserve in within a financial institution is also the fact that those financial institution or fractional reserve based meaning that you're actually on the layers of players that may be the end the end layer will show food reserve type of status but below the bank actually holding those

assets is actually running a fractional reserve system and now it creates risk because this bank can actually go bankrupt this Bank can have a bank run this bank can be poorly managed and that's also the jury of Finance or any other issue of such programs to make sure that the diversified are custodians because those custodians can you know some of them might be better than others so by diversifying the custodians they used maintain the reserve which reduces also drastically the risk of people losing the value of the token supposed to be that's a good point and at the CBA we have the

regulatory working group where we tackle the AML and the cause border but we have also a special task force that is coming that is going to be led by adjuchas compete for the CVA where we will count on some of our members already some that are coming our members and we are going to tackle the position it's a position paper from the FSB so we are going to provide full answers on that Amy are we taking another question yes so I think nfmm is back and he's going to ask his question live so please state your name

and the question and where are you viewing from hello do you hear me we do hi okay hi I'm Nicholas Fehn animal aide oh I'm a financial lawyer here in Argentina and my question is a stable coin survive without Reserve or a stressed Reserve supported only by the trust of consumers in the coin and I think this because after all the Bitcoin value is only supported by by the trust since it is not convertible but I'm not I'm not

sure I could imagine a stable coin design that would mimic those features right because if you have something which is purely relying on trust and not a reserve then you must also imagine that trust will be varying right depending on the day of the week or you know whether we have a pandemic or not like that would make that would introduce volatility right yeah sure but I I recall for example the origin of currency and currency itself when it is issued by central bank's they are basically you know supported by by the trust of the value or of the value that the people think that that point

will have in the future and that can be exchanged for other values so I I was thinking if a stable coins in the end maybe without reserve can only have a link to add to a fiat and that that will give the current value but okay do you know if there is any stable coin in the in the market that John Cobb reserve or all of them have reserves yeah with make stable coins they don't have reserves but none of them has been successfully launched thinking in regards to those that launched I'm not

familiar with with one that doesn't have a reserve or use some kind of collateralization mechanism to put angular against them I think that some yeah yeah and that race is another question at is that that we you know whenever you have in the capital markets some products that are collateralized like financial trusts or trust funds and these even when you have collateral what kind of coverage or security thus the the kind of collateral provides because

if we have reserved for example for a for a determined stable Cohen it depends on if you have that reserve or feared collateral deposit in in in which entity and what kind of deposit is it a term deposit a have you made investments like money market funds or you know that is important I think that's enough if I may maybe take this question yes so there I I see there are two two things actually one part of this puzzle is which type of assets are in the reserve so which type of assets is

the issue or the manager of the Reserve is investing to another part of the problem is how transparent is the reserve right so let's say if you invest in a particular stable coin can you in can you actually see which assets does the risk is the Reserve invested it so you as an investor you will make the decision about the trust right away about your let's say you will have your understanding of risk so you will take a look at this SS and you will decide if the reserve is properly invested the mod properly invested but if you cannot in

real time if you cannot follow the reserve itself then we decrease it creates yet another problem and I think that the second part is more essential so the transparency is more essential because the investor does not have an opportunity to make any type of conclusion about the risk yeah I'm sorry I'm anti-racist to me another question of this what is it sorry for jumping like if this is your question number three already I'm sorry sorry sorry no okay we we are going to give Mazen the chance you're really welcome to us that question as well in the in the chat room

in a few minutes Maslin has one more question and then we will go to their respective chat rooms and then you can directly call to Martine Alex Gustav Josh Ilya in or no so amazin what is your question one question please quickly and then we can we can move on hi everyone thanks for this amazing panel I am attending from from Canada so my question was what are some of the opportunities for foreign like entrepreneurs like myself to be able to

start their ideas and ventures in Switzerland and what support the crypto Valley Association would provide to people like myself who are not probably familiar with the ecosystem of the crypto it could ecosystem in Switzerland I I think the simple answer will be just a recommendation to join CDA and I believe maybe Jerome could could tell us more I was about to say yeah absolutely I started from from Switzerland and and now we are getting global helping like you to succeed in your in your project you could definitely contact us and by

the way the best would be to continue this discussion one to one also in the crypto body Association room that will be opening in a few minutes after this this main even ends because we are already running bit late more than 15 minutes it's not very Swiss 15 minutes late so I Mason I will welcome to you and my room in five minutes and welcome all the people interested to join crypto body association and then so now we can close the main event a me maybe and and go in the networking but yeah absolutely be before the wonderful hosting of the

panel and other panelists put your hands together virtually for all thank you and then can you guys see my screen so basically now I invite you all to the networking room if you go to the chat you see the respective zoom rooms you have to you have to click on depending on who you want to network with and you can ask the questions you like and as next is your own I would like to invite you to share your closing remarks and then we can all move to the to the zoom rooms yeah absolutely thank you once again for everybody joining us today

it's been an amazing first first try not a lot of technical issue almost nothing we hope that it would be a same and networking path so you can see that it's a series that we launched today already next week you can register today for an enterprise blockchain online event to be the same system the same zoom system and we are also preparing something quite fun for the hug the whole thing between how thing we own trying to organize an event slash party for force of my subsidy date we are and connect back to to register and yeah one last thing of

course join us join the association to learn connect advocate and innovate in crypto we will create a group on our members portal for to allow any crypto buddy members to continue the discussion to exchange directly their contact details so this is a members only features it's also an additional value for for you to join us and as Biba said we will launch now the stable coins taskforce in a recognition working group so we'll be able to work directly on that hot topic and help the community so I think that's it and I

hope that lots of you will attend the 10 room so you have the chat you can also look at the zoom URL and email you received a few hours ago and then let's hope that we finished this great event in the networking room thank you so much everyone we are delighted to have been having you here on the first virtual series of the CBA and join us in the meeting rooms I will be in the bonus room and I hear that the sting the room is live already so meet you all on the other side you think this chat will be still life if you will need to serve within the

rooms you can log in again to the same room here look at the list of links in game and continue searching so the East Room will be still alive and that's true because we are we will limit the number of people in each room so that's every 13 peak so that's why they will be the waiting room so you can come back here to know which room as an available slot slot so I logged off to open the crypto valet association room in one minute bye bye