On the second day of the World Economic Forum (WEF) annual meeting (Davos meeting), from climate change countermeasures to humanitarian assistance to Ukraine, to breaking away from the shocking collapse of FTX, crypto assets (virtual currencies) themselves The discussion focused on the possibilities of the underlying technology.
Not a blockchain crisis
On the second day, a panel discussion was held by people involved in traditional finance, and although the FTX scandal was a crisis for the cryptocurrency industry, it was not a crisis for other tools based on blockchain technology. Tried.
“It is important not to confuse crypto assets with Central Bank Digital Currencies (CBDCs), stablecoins and blockchain technology … they are very different,” said PayPal President and CEO Dan Schulman. Told.
Despite falling cryptocurrency prices, “the underlying technology is working perfectly. Blockchain benefits are faster, cheaper, and simultaneous settlement of transactions without intermediaries. Importantly.” (Mr. Shulman)
More importantly, unlike the often-used phrase “blockchain, not bitcoin” (which mostly referred to permissioned blockchains), the discussion on the 17th focused on Ethereum, Stellar, and others. was dealing with the public blockchain of
Lynn Martin, president of the New York Stock Exchange, said: “Blockchain has the potential to bring many benefits, such as streamlining the issuance of stocks and allowing financial transactions to be settled instantly instead of days. There is,’ he said.
Former Central Bank Governor of India Raghuram Rajan said.
Ultimately, however, traditional finance’s approach to this area may be limited. Shulman, Martin, and State Street Chairman and CEO Ronald O’Hanley all said the technology they’re most excited about is not blockchain, but artificial intelligence (AI). I answered.
UNHCR, Climate Change Solutions
A historic church across the street from the main venue has been transformed into a venue for discussions about the future, and Carmen Hutt of the United Nations High Commissioner for Refugees (UNHCR) provides an example of how blockchain can be used. explained in detail.
A December pilot project using the Stellar blockchain is at a much more advanced stage than expected, according to a panel moderated by CoinDesk Chief Content Officer Michael Casey. Stated. By placing the support money on the blockchain, they were able to achieve “transparency and visibility” and set up a platform that could immediately deploy support.
“It’s an amazing proposition… even if we were to roll out $500 million today, we could actually roll it out in a day. So it’s not a process that would take weeks or months,” Hatt said. Also, the Deputy Prime Minister of Ukraine praised the contribution of crypto assets in the conflict with Russia).
The more famous Promenade (the downtown area outside the main venue) brings together industry giants such as Solana, Ripple and the Global Blockchain Business Council (GBBC) to promote blockchain transparency. announced efforts to improve the tracking of carbon footprint and credits using better record keeping.
Regulators have long focused on the power of crypto assets to threaten financial stability. A series of bankruptcies last year that wiped out billions of dollars of private investment (especially the FTX bankruptcy) may have highlighted the need for a shift in focus. In other words, we need to pay more attention to the risk of individual consumers being deceived by cryptocurrency scams.
“It’s not that regulators will ignore[financial innovation]. If it doesn’t lead to systemic risk, they won’t focus on it,” said State Street’s O’Hanley.
“FTX has destroyed $2 trillion to $3 trillion in value, costing a million investors and participants. Regulators need to think differently,” O’Hanley said.
The idea that regulators such as the UK, who are currently considering how to regulate crypto assets, may change their focus, came from another panel hosted by US stablecoin company Circle. It was also brought up in discussion.
“Consumer protection is really underscored this year. Unfortunately, the UK is a big hub for fraud and fraud, and the government is very aware of that,” said Isabella, Senior Policy Advisor at TRM Labs. Isabella Chase said.
UK regulators have already said investors need clear warnings when buying crypto assets. Lawmakers concerned about the impact on their customers, who are also voters, may be strongly affected by the collapse of FTX.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Davos, Switzerland (Nikhilesh De/CoinDesk)
｜Original: Blockchain’s Non-Crypto Applications Take Center Stage on Davos Day 2