Name: Crypto Canvas - From crypto winter to crypto spring
Uploaded: 2024-03-14T10:00:52.682Z
Duration: 400.36
Description: Crypto Canvas explores with Jillian Godsil, Journalist at Coin Telegraph, at Finovate Europe what are the risks & opportunities of DeFi & a new crypto universe geared towards building a new internet native financial system? How are regulators globally viewing crypto now?

Crypto Canvas - From crypto winter to crypto spring.mp4

Crypto Canvas - From crypto winter to crypto spring.vtt

ENGLISH

{{00:00:16}}
The biggest problem we have at the moment
that the regulators are not that familiar

{{00:00:20}}
with Bitcoin, or if they are, they think
of it as a dodgy ponzi type scheme.

{{00:00:24}}
So what happens is that here in the UK,
there are five organizations that regulate

{{00:00:30}}
currency, the FCA, the Bank of England,
the Treasury, Parliament, and the HMRC.

{{00:00:37}}
So those are the four entities.

{{00:00:38}}
But with the FCA, to, to become a
member of the FCA, you have to first

{{00:00:42}}
of all, declare what crypto you might
hold, and B, divest yourself of it.

{{00:00:46}}
So I understand they want them to
be impartial people, but it does

{{00:00:49}}
mean that people then who are
regulating this industry, Maybe

{{00:00:53}}
you don't know that much about it.

{{00:00:54}}
Maybe you don't care much about it.

{{00:00:55}}
Maybe you still believe the
fact that it's considered dodgy.

{{00:00:58}}
It has a bad reputation and
that's not helpful going forward.

{{00:01:01}}
It's like trying to teach someone to swim
by throwing them a booklet and say, there,

{{00:01:04}}
read that and you can go off and swim.

{{00:01:05}}
So that's not so cool.

{{00:01:15}}
The combination of traditional Fintech we
say traditional Fintech, hilarious, it's

{{00:01:19}}
new stuff really and crypto is even newer.

{{00:01:22}}
Crypto is hard to do.

{{00:01:23}}
I know I'm not a crypto bro I didn't
come to this as a, young kid, I came to

{{00:01:27}}
this as a mature woman with an experience
of traditional financial institutions.

{{00:01:31}}
And I found getting my head around
wallets and keys and stuff so complex.

{{00:01:37}}
And I wish it could be easier.

{{00:01:38}}
The problem is, as a trade off, if it gets
easier, then it tends to be centralized.

{{00:01:41}}
You lose the decentralized
nature of the product.

{{00:01:43}}
So there's a trade off, but I think
as it gets easier, and maybe Fintech

{{00:01:47}}
and Crypto can come together to
make that the UX better, because

{{00:01:49}}
the UX, the actual interface, is so
important, because if it's too hard

{{00:01:52}}
to use, people aren't going to use it.

{{00:01:53}}
So that's one thing that
can certainly be done.

{{00:02:03}}
It will decentralize finance.

{{00:02:05}}
It's important to differentiate, because
people who are not so familiar with the

{{00:02:08}}
space might say that, oh, there's all that
Celsius and the three, three arrows and

{{00:02:13}}
FDX and Terraluma all collapsed last year.

{{00:02:16}}
They weren't all DeFi, but
they were all centralized.

{{00:02:19}}
So it's quite interesting that, you look
at that, you go, Oh that's really, bad.

{{00:02:23}}
But DeFi in itself is decentralized
finance and there are protocols, things

{{00:02:28}}
like Aave and Uniswap and Compand
and Curve that have been trundling

{{00:02:32}}
along in the background, making
no difference, and making, having

{{00:02:34}}
no problems and being quite good.

{{00:02:38}}
DeFi, again, make it easier.

{{00:02:39}}
Make sure it's DeFi and not CeFi.

{{00:02:41}}
And I think it will help people come
to terms with and embrace crypto.

{{00:02:54}}
Education is huge, There is so much
disinformation at the moment about crypto.

{{00:03:00}}
There's so much disinformation in the
world about everything, to be honest.

{{00:03:04}}
And the problem is, as I said earlier with
the FCA, to be a member of the FCA, you

{{00:03:07}}
have to divest yourself of any crypto.

{{00:03:09}}
Doesn't help, right?

{{00:03:10}}
Also, there's a recent
announcement the FCA did.

{{00:03:13}}
They termed that all crypto is
now, they called it, Restricted

{{00:03:16}}
Mass Market Investments.

{{00:03:19}}
So two things there.

{{00:03:19}}
First of All crypto.

{{00:03:21}}
And all crypto is not created equal.

{{00:03:23}}
There's quite differences from
your Bitcoin through to your

{{00:03:25}}
Mean Coins at the far end of the
scale, just your failed tokens.

{{00:03:28}}
They're not all created equal, so
calling them all these restricted

{{00:03:31}}
mass market investments is wrong.

{{00:03:33}}
The FCA even put in their document that
they had spoken to experts who said

{{00:03:37}}
this was wrong, but they did it anyway.

{{00:03:39}}
I'm not quite sure what that's all about.

{{00:03:40}}
But also the net effect is that it
means that if you want to use a UK

{{00:03:44}}
regulated platform to buy crypto, the
problem is that the first one you have

{{00:03:48}}
to do, To explain who you are, then
you have to do a quiz, and then there

{{00:03:53}}
might be a 24 hour cooling period.

{{00:03:55}}
That's not going to make people
go to regular UK regulated

{{00:03:58}}
platforms to buy crypto.

{{00:03:59}}
So education, internally with a
regulator, and also externally.

{{00:04:02}}
And finally, the other thing I want to
say is that, there's this whole like

{{00:04:05}}
concept, there's two things I want to say.

{{00:04:06}}
There's two concepts of that
in education, bad education.

{{00:04:09}}
People think that crypto
is used for criminality.

{{00:04:12}}
In actual fact, if you want to be a
criminal, you're much better to use

{{00:04:14}}
fiat pounds, sterling, euro, whatever.

{{00:04:17}}
And they do.

{{00:04:18}}
They do absolutely use, use fiat because
it's much easier to do it much easier

{{00:04:22}}
to do it and much easier to hide it.

{{00:04:23}}
That's the stars.

{{00:04:24}}
Crypto is not used.

{{00:04:25}}
It's used for 0.

{{00:04:27}}
001 of all criminal transactions.

{{00:04:29}}
Secondly, the thing that I'd like to
say is that, Education is a funny thing.

{{00:04:35}}
For example, with crypto, especially
with Bitcoin, a proof of work, people say

{{00:04:38}}
that it's incredibly energy intensive.

{{00:04:40}}
It is.

{{00:04:41}}
Absolutely, there's no doubt about it.

{{00:04:42}}
However, there's a new project
here in the UK called Renewables.

{{00:04:47}}
What they're doing is they're
creating Bitcoin units, mining units.

{{00:04:50}}
And why is that important?

{{00:04:51}}
Because in the UK, you are
losing about 200 millions worth

{{00:04:55}}
of stranded energy every year.

{{00:04:57}}
Because the grid cannot accept all the
inputs from the renewable energies.

{{00:05:00}}
Up in Scotland, you've got these wind
farms, they can't bring it down to

{{00:05:03}}
the grid because the grid is too old
fashioned, it needs to be overhauled,

{{00:05:05}}
it'll take 10 years, and it's costing,
as I say, they are earthing or doing

{{00:05:09}}
wind curtailment of 230 million pounds.

{{00:05:12}}
Pounds worth of energy every year.

{{00:05:14}}
And that does two things
to people here in the UK.

{{00:05:16}}
One, it means you put extra, everybody
has a 40 euro charge put onto their

{{00:05:20}}
household account every household.

{{00:05:23}}
But also consider the pensioner
or the single mom with kids who is

{{00:05:26}}
choosing this high cost of living,
choosing between heat and food.

{{00:05:30}}
So it's, education is important, like
something like these Bitcoin mining

{{00:05:34}}
units, they can sound a bit exotic,
they're using stranded energy, it's

{{00:05:37}}
actually part of the ESG message,
which is just, it's education, it's not

{{00:05:41}}
thinking of Bitcoin as a problem to be
solved, but as a solution to a problem.

{{00:05:55}}
Technology moves at a pace, it moves so
fast, we see with AI, where government and

{{00:06:00}}
law cannot keep up with the changes in AI,
they can't legislate for it, it's quite

{{00:06:04}}
frightening how fast technology moves.

{{00:06:06}}
In the case of Layer 2
applications, it's now possible.

{{00:06:09}}
With the Bitcoin blockchain originally,
it's very, considered very slow.

{{00:06:13}}
It's 7 transactions per
second, which is tiny.

{{00:06:16}}
But now with the Lightning Network, it
can do many, several million per second,

{{00:06:20}}
which apparently is greater than Visa.

{{00:06:22}}
These things will happen.

{{00:06:23}}
They'll happen, the Layer 2 solutions
will come on board because it's

{{00:06:26}}
too much money, too much interest,
and too much passion, basically,

{{00:06:29}}
in the space for it not to work.

The biggest problem we have at the moment
that the regulators are not that familiar

with Bitcoin, or if they are, they think
of it as a dodgy ponzi type scheme.

So what happens is that here in the UK,
there are five organizations that regulate

currency, the FCA, the Bank of England,
the Treasury, Parliament, and the HMRC.

But with the FCA, to, to become a
member of the FCA, you have to first

of all, declare what crypto you might
hold, and B, divest yourself of it.

So I understand they want them to
be impartial people, but it does

mean that people then who are
regulating this industry, Maybe

Maybe you still believe the
fact that it's considered dodgy.

It has a bad reputation and
that's not helpful going forward.

It's like trying to teach someone to swim
by throwing them a booklet and say, there,

The combination of traditional Fintech we
say traditional Fintech, hilarious, it's

new stuff really and crypto is even newer.

I know I'm not a crypto bro I didn't
come to this as a, young kid, I came to

this as a mature woman with an experience
of traditional financial institutions.

And I found getting my head around
wallets and keys and stuff so complex.

The problem is, as a trade off, if it gets
easier, then it tends to be centralized.

You lose the decentralized
nature of the product.

So there's a trade off, but I think
as it gets easier, and maybe Fintech

and Crypto can come together to
make that the UX better, because

the UX, the actual interface, is so
important, because if it's too hard

So that's one thing that
can certainly be done.

It's important to differentiate, because
people who are not so familiar with the

space might say that, oh, there's all that
Celsius and the three, three arrows and

FDX and Terraluma all collapsed last year.

They weren't all DeFi, but
they were all centralized.

So it's quite interesting that, you look
at that, you go, Oh that's really, bad.

But DeFi in itself is decentralized
finance and there are protocols, things

like Aave and Uniswap and Compand
and Curve that have been trundling

along in the background, making
no difference, and making, having

And I think it will help people come
to terms with and embrace crypto.

Education is huge, There is so much
disinformation at the moment about crypto.

There's so much disinformation in the
world about everything, to be honest.

And the problem is, as I said earlier with
the FCA, to be a member of the FCA, you

Also, there's a recent
announcement the FCA did.

They termed that all crypto is
now, they called it, Restricted

There's quite differences from
your Bitcoin through to your

Mean Coins at the far end of the
scale, just your failed tokens.

They're not all created equal, so
calling them all these restricted

The FCA even put in their document that
they had spoken to experts who said

I'm not quite sure what that's all about.

But also the net effect is that it
means that if you want to use a UK

regulated platform to buy crypto, the
problem is that the first one you have

to do, To explain who you are, then
you have to do a quiz, and then there

That's not going to make people
go to regular UK regulated

So education, internally with a
regulator, and also externally.

And finally, the other thing I want to
say is that, there's this whole like

concept, there's two things I want to say.

There's two concepts of that
in education, bad education.

People think that crypto
is used for criminality.

In actual fact, if you want to be a
criminal, you're much better to use

They do absolutely use, use fiat because
it's much easier to do it much easier

Secondly, the thing that I'd like to
say is that, Education is a funny thing.

For example, with crypto, especially
with Bitcoin, a proof of work, people say

However, there's a new project
here in the UK called Renewables.

What they're doing is they're
creating Bitcoin units, mining units.

Because in the UK, you are
losing about 200 millions worth

Because the grid cannot accept all the
inputs from the renewable energies.

Up in Scotland, you've got these wind
farms, they can't bring it down to

the grid because the grid is too old
fashioned, it needs to be overhauled,

it'll take 10 years, and it's costing,
as I say, they are earthing or doing

And that does two things
to people here in the UK.

One, it means you put extra, everybody
has a 40 euro charge put onto their

FinovateEurope

Finovate

Crypto Canvas

Expert Insight

Crypto Canvas explores with Jillian Godsil, Journalist at Coin Telegraph, at Finovate Europe what are the risks & opportunities of DeFi & a new crypto universe geared towards building a new internet native financial system? How are regulators globally viewing crypto now?

Crypto Winter

Blockchain Crypto

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Jillian Godsil

Discover insights from other experts

Award Winning Journalist, Author and Broadcaster

What regulatory changes and advancements in compliance measures are necessary to thaw the crypto ice age and foster a more favourable environment for fintech innovation?  

How can financial institutions collaborate with fintech start-ups to integrate blockchain and cryptocurrency technologies into mainstream financial services during the crypto spring?  

What role can decentralised finance (DeFi) play in reshaping the fintech landscape during the crypto spring, and what challenges need to be addressed for its widespread adoption?  

How can education and awareness initiatives be leveraged to overcome scepticism and promote widespread adoption of cryptocurrencies and blockchain technologies in the fintech sector?  

In what ways can technological advancements, such as layer 2 scaling solutions and interoperability protocols, contribute to overcoming the limitations and barriers hindering the growth of cryptocurrencies in fintech?  