5 Biggest Crypto Themes From Coinbase CFO, President Of Signature Bank

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Coinbase CFO Alessia Haas and Signature Bank Chairman Scott Shay discussed cryptos at a recent event. They believe cryptos will revolutionize the job market and the banking industry. They also stressed the need for new “tailor-made”, “bipartite” laws for blockchain.

Coinbase CFO Alesia Haas believes crypto has “passed the fringe or early adopters” and has become mainstream.

The numbers back up his claim. In July, Crypto.com reported that the number of global crypto users had reached over 200 million, doubling since January. A recent survey by the Pew Research Center found that 16% of American adults have personally traded or invested in cryptocurrency.

In fact, in a live chat hosted by the Economic Club of New York on Nov. 16, Haas said she believes cryptocurrencies in the future will provide the answer to “economic freedom.” .

She was accompanied by another panelist Scott Shay, co-founder and chairman of Signature Bank. Together, the two discussed the five biggest themes in cryptocurrency today.

Labor markets will be revolutionized

One of the ramifications of blockchain technology has been the creation of certificates of ownership stored digitally with non-fungible tokens (NFTs), tied to items of value. Haas believes that NFTs have the potential to completely transform the creator economy, as they record every transaction in a “line of ownership,” allowing artists to receive royalties for every secondary sale.

In addition, she believes there will be “drastic changes” in the types of jobs available to workers. Besides cryptos, other sectors that could usher in these changes include electric cars and artificial intelligence.

“There is going to be a reduction in middlemen,” she said. “Back-office settlements or reconciliations of these types of roles, when they can be automatically executed by code, will no longer need to be performed by humans. “

Haas has also seen the emergence of a concept called “contributors in residence” or “entrepreneurs in residence,” where, incidentally, engineers have contributed part-time to several projects they find interesting.

“I think you’re going to find that people will follow their passions a lot more,” she said. “They are going to have unique opportunities to do several things part time, which will change the way the labor pool works.”

CBDCs will appear “less attractive than they appear”

One topic that has recently been in the spotlight is central bank digital currencies, or CBDCs.

However, Shay believes there would be “huge resistance” to a government issued currency. For example, he thinks people will fear that the government will exercise control over all their transactions or that it will be prohibited to give their money to particular causes when another administration is in office.

“We live in a divided society and there is no tool more powerful than controlling one’s ability to spend money,” he said.

In addition, Shay believes that many problems will arise if the government begins to allocate private capital, which will be one of the ramifications of the government holding and lending all the money. One potential way to mitigate these risks, he says, is to cap CBDCs at a certain amount.

Bipartite laws must be created

“The changes made possible by these technological innovations simply do not fit into the existing financial system,” Haas said at the conference.

Many financial regulations were written decades ago, before the existence of blockchain. It emphasizes the “need for more thoughtful and specially designed regulations for crypto, as it is new underlying technologies that will remove the need for middlemen.”

“We are very much in line with the spirit of the laws the need for consumer protection, the structure of the market and the protection against illicit activity, but I think we can have a very good debate on how to get there.” , she continued. “And the way we do it may be drastically different today than it was in the 1970s.”

Shay says that ultimately congressional engagement will have an impact, as he believes many issues cannot be resolved with existing regulations and can only be resolved by implementing completely new laws.

“We need it to be bipartisan, because we need everyone to embrace it,” he said. “The last thing we need is a law that could be reviewed or changed depending on who is in control.”

Traditional banking will evolve

Over the next ten years, Shay believes people will begin to recognize the value of immediate payments and break free from traditional banking hours.

“Sooner or later, banks will have the opportunity to deal with each other and with their customers large sums at any time of the day or night,” he said, with the caveat that it may be necessary. be some time to achieve this status due to the heavy regulations that banks face.

Many of the risks people face today, such as credit, operational, or product risk, will also be taken out of the equation when money transfer becomes instantaneous. It goes back to “the central idea of ​​finance”, which, according to Shay, is “to take all the possible risks of a transaction”.

He also believes the biggest banking revolution will come in record keeping, at the core operating system level. Blockchain will allow institutions to forgo the tracking of long multi-party record leads, ensuring that future transactions are as transparent and timely as possible. Personally, he thinks the 2008 mortgage crisis could have been avoided entirely if blockchain had existed to make it clear who was responsible for a mortgage.

“Blockchain will be fundamentally better for commerce,” Shay said.

The Favorable Future of Cryptos

As individuals begin to embrace the crypto boom, cities are unlikely to issue their own cryptocurrencies, although Haas predicts that more and more people will ask to be paid with crypto.

On this point, Shay specifies that “interoperability is an essential element of the user-friendliness of a currency” to avoid paying foreign currencies during a trip.

“Ultimately, the winning protocols for currency will be those that are easily interoperable,” he concluded, clarifying that this does not apply to cryptos used primarily as a store of value rather than a method of payment, like Bitcoin.

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