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Description
Meetup Description:
We’d like to thank the London Ethereum Meetup (http://www.meetup.com/ethereum/) event sponsors and organizers:
Electron: http://www.electron.org.uk
CryptoCompare: https://www.cryptocompare.com/
Slock.It: https://slock.it/
Also a big thank you for the video recording and editing to Harry Barber: http://www.harrybarber.com/
Tramonex is a global financial services provider focused on international cash flow management. They bring their expertise to the blockchain space to fuel the move towards near-instantaneous settlement and reduced counterparty risk through the use of technology.
Tramonex received a grant from Innovate UK to develop an FX-settlement prototype using blockchain technology. They are regulated by the UK's FCA and position themselves as the company that bridges the gap between distributed ledgers and the regulated financial framework. They solve the pain point of moving money on the Ethereum blockchain in a regulated fashion. Contact Tramonex after the talk if you want to help them grow the ecosystem.
A
First
of
all,
thank
you
all
for
coming.
Thank
you
for
the
other
presenters
who
will
be
speaking
after
us.
Thank
you
to
Imperial
for
hosting
us,
obviously
and
I
know.
A
lot
of
work
goes
behind
the
scene
in
organizing
these
things
sending
out
the
invitations
managing
the
list.
So
thank
you
to
the
crypto.
Compare
guys,
especially
Vlad
for
doing
this
month
after
month
for
the
for
the
last
I,
don't
know
how
many
years
I
have
been
attending
the
etherion
meetups
for
the
past
two
years
and
I
normally
sit
at
the
back
and
keep
close
it's.
A
You
know
it's
nice
opportunity
for
me
to
actually
take
the
stage
and
present
to
the
community
about
what
project
the
project
we're
working
on.
So
as
I
mentioned,
our
company
is
trauma,
necks
and
we're
going
to
present.
We
have
a
presentation.
We
want
to
show
you
and
then
we'll
open
it
to
QA,
and
we
we
work
in
the
payment
space.
A
Specifically,
we
we
have
an
existing
business
in
international
payments
where
we
can
execute
the
foreign
exchange.
Our
clients
are
in
mainly
in
continental
Europe,
emerging
markets,
Africa
businesses
that
do
import
export
shipping
companies
Airlines
of
a
variety
of
corporates.
We
were
very
much
b2b
and,
as
we
build
this
business
over
the
last
two
years,
we
had
to
develop
a
lot
of
internal
procedures
about
AML
compliance,
risk,
etc,
and
we
obviously
we
have
been
working
with
the
FCA.
The
financial
conduct
authority
very
closely.
We
are
regulated
and
our
license
is
passport
it
across
all
EU
countries.
A
So
last
year
we
were
doing
a
bit
of
research
and
development
in
terms
of
what
are
the
emerging
technologies
that
will
have
a
big
business
on
a
big
impact
on
our
international
payments
business-
and
you
know
you
you,
you
cannot
escape
coming
across
blockchain,
it's
it's
it's
in
the
news.
It's
in
academic
publications,
you,
you
cannot
escape,
noticing
it
and
we,
as
we
did
our
research
we
noticed
so
we
are.
We
are.
A
What
time
it's
been
picked
up,
the
name
of
the
driver
when
it
comes
to
payments,
it's
a
bit
of
a
black
hole,
so
the
money
goes
in
and
hopefully,
a
few
days
later
it
comes
out
in
the
right
place
and
and
and
the
amount
of
sort
of
exceptions
and
issues
that
arise.
To
give
you
an
example,
if
your,
if
your
company
and
you're
making
a
payment
of
300,000
pounds-
and
you
want
to
convert
it
to
euro
to
fund
your
account,
you
have
to
send
300
pounds.
A
If
you
say,
if
you
send
325
pounds,
chances
are
the
payment
will
be
rejected
and
then
because
of
the
25
pounds,
excess,
and
then
you
have
to
do
it
again
and
each
time
you
do
it,
there's
fees
involved,
there's
time
involved,
people,
phone
calls
etc.
So
in
theory,
block
chain
and
cryptocurrencies
can
address
a
lot
of
these
issues
in
terms
of
providing
transparency
in
terms
of
providing
speed,
especially
I'm
referring
to
public
blockchains,
not
not
the
private
permission
blockchains.
A
So
so
that's
great!
We!
Why
don't?
We
all
start
using
a
cryptocurrency,
an
etherion
to
transact?
Well,
so
it
turns
out,
like
cryptocurrencies,
are
in
a
regulatory
grades
out,
so
in
other
words,
if
it's
not
very
clear,
are
the
exchanges
regulated
that
trading
crypto
currencies
once
you
have
to
keep
the
currency,
it's
not
very
clear!
Well
what
what
rights
do
you
have
as
a
consumer?
Is
there
a
public
body
you
can
turn
to?
A
If,
if
things
go
wrong
and
I
mean
regulators
in
many
countries
and
central
banks
are
watching
this
space
and
regulation
is
evolving,
but
at
the
moment
it's
a
gray
zone.
So
we
came
along.
We
studied
very
closely
the
technology.
We
have
our
existing
business,
so
we
put
the
two
together
and
decided.
Well.
Is
there
some
way
to
bridge
these
two?
Is
there
some
way
to
do
crypto
in
a
regulated
way?
A
So
that
is
our
solution.
We
try
to
position
ourselves
as
a
bridge
between
the
regulated
financial
system
and
you
know,
blocked
a
blockchain
based
payment
services
and
and
and
the
way
this
works
in
the
in
the
context
of
etherium
its.
If
you
go
on
the
theory
and
web
page,
you
will.
The
first
thing
you
will
learn
is
how
to
issue
your
own
digital
token
on
the
Tyrian
blockchain,
it's
very
straightforward.
A
The
problem
is
that
token
normally
doesn't
have.
Any
value
doesn't
mean
anything,
so
we
are
giving
value
to
our
token
by
holding
collateral
in
in
fiat
at
a
segregated
bank
account
and
we're
able
to
do
that
because
of
our
regulated
status
and
because
of
our
knowledge
and
expertise
in
in
the
traditional
banking
environment.
A
A
Your
smart
contracts
can
interface
directly
with
them,
so,
whether
it's
an
insurance
contract
that
needs
to
collect
premiums
or
make
a
payout,
whether
it's
just
a
direct
payment
link
to
your
cart,
whether
it's
something
more
complex
like
we
will
show
an
example
later
of
sort
of
government
money.
How
you
can
restrict
the
uses
of
money
so
so,
in
effect,
you
know
on
the
block
chain,
so
we
want
to
have
the
benefits
of
national
currencies
because
people
understand
what
they
are.
You
know
people
understand
pound
sterling
people
understand.
Us
dollar
people
don't
understand
Bitcoin.
A
A
Mean
this:
these
are
some
of
the
benefits
of
this
kind
of
arrangement.
You
can
see
it
enables
quite
quite
a
few
things.
So
what
I'm
hoping
is
people
who
are
working
on
very
smart
contract
ideas
or
other
business
plans
where
the
pain
point
is
the
actual
moving
of
the
money?
We
please
come
and
talk
to
us
afterwards,
because
we
potentially
have
a
way
for
you
to
do
it
directly
on
the
block
chain,
which
means
you
know
nearly
instantaneous
and
transparent,
immutable,
etc,
etc.
So,.
A
B
That's
quite
a
big
question:
I'm
not
hugely
familiar
with
this
slide,
so
you're
gonna
have
to
bear
with
me,
but
actually,
if
we
go,
if
we,
if
we
do
stick
on,
how
does
it
actually
work,
the
one
of
the
things
I
like
about
the
model
we've
come
up
with
it,
it's
very,
very
simple.
Anyone
who
has
done
any
solidity
development
at
all
will
be
very
familiar
with
a
solidity
token
or
the
etherium
token.
It's
Nick
pointed
out
rolling
out
your
beloved
unicorn
token
is
probably
the
first
thing
you're
going
to
do.
B
If
you
come
across
solidity
or
a
theory
more
generally,
we
are
very
much
stuck
to
that
paradigm.
The
token
we
are
issuing
onto
the
etherion
blockchain
is
just
using
the
standard.
Etherium
token
interface.
There
is
no
I'll,
be
honest,
I'm
going
to
stand
here
openly,
as
the
CGI
say.
There's
no
technical
genius
going
on
here.
What's
really
interesting,
is
kind
of
the
operational
component
factored
with
the
etherium
token
covered
by
that
regulatory
umbrella.
So
what
we
do
is
we
let's
say
you
want
100
digital
pounds
worth
of
of
these
tokens.
B
You
essentially
send
us
100
pounds
we're
a
regulated
financial
institution.
You
can
wire
it
to
us.
You
know,
you
know,
potentially
a
range
of
forms,
we're
looking
to
put
a
payment
gateway
in,
so
you
can
just
do
it
on
your
credit
card.
If
that's
what
you
were
looking
to
do
and
we
would
hold
that
money
in
what's
known
as
a
client
segregated
bank
account.
So
this
is
like
an
FCA
reg
oversights.
They
give
their
oversight
to
these
client
segregated
accounts.
B
That
really
means
that
if
we
go
bankrupt,
we
can't
touch
that
money,
nor
can
administrate
er.
It
means
that
money
is
safe
and
would
get
re.
You
know
delivered
out
people
you
know
were
we
to
go
bankrupt.
The
idea
is
that
you
send
us
the
money.
Once
we
can
acknowledge
receipt
of
those
funds,
we
will
issue
the
tokens
to
wherever
you
have
which
would
ever
address
you
have
requested
they
be
sent
to.
B
We
need
to
perform
some
kind
of
background
checks
on
you
some
you
know
some
kyc
know
your
client
checks
again
from
a
regulatory
point
of
view
to
know
who
you
are,
but
once
that's
done,
you've
got
these
tokens
and
you
can
do
what
you
like
with
them.
They
are,
as
we
see
them.
Essentially,
digital
banknotes.
They
behave
exactly
like
a
bank
name,
there's
almost
no
difference.
B
Apart
from
the
fact
that
you
can
now
interact
programmatically
with
your
bank
name,
which
is
pretty
cool,
we
are
normally
careful
how
many
people
I
say
this
to,
because
it
it
can
start
to
raise
some
other
concerns.
We
are
essentially
acting
like
a
central
bank.
If
that
we
we
essentially
are
behaving
like
a
central
bank,
have
some
implications.
You
know
I'm,
not
sure
how
you'd
value
a
central
bank,
for
example,
but
you
know
it's
the
fact
that
it
is,
you
know,
has
regulatory
oversight.
B
Does
the
thing
that
you
know
we
really
considered
to
actually
be
a
very
powerful
thing.
We
have
a
number
of
clients
who
are
interested
in
using
this
who
who
wouldn't
use
it
if
there
wasn't
that
regulatory
backing
turn.
So
that's
very
important
to
us.
I
originally
got
interested
in
this,
because
my
background
is
banking,
for
my
sins:
keep
the
booze
to
a
minimum.
Please
we
we!
We
really
got
into
this
because,
like
Nick
said,
you
can't
get
away
from
the
block
chain
in
the
financial
technology
space
right
now.
B
Nor
would
you
want
to
the
current
model,
for
if
you
actually
take
a
foreign
currently
transaction
for
us,
is
pretty
much.
Someone
comes
to
us
with
their
sterling.
They
say:
I
want
to
make
a
euro
payment,
but
I
don't
have
a
year.
A
bank
account
nor
do
I
have
any
way
of
getting
older
two
million
euros.
So
they
come
to
us.
B
We
take
the
sterling
we
go
to
the
bank
or
the
street
or
the
FX
market
place,
and
we
do
a
foreign
currency
transaction
it'll
take
two
days
for
that
to
settle
and
to
move
actually
those
final
that
euro
payment
on
to
the
final
payee.
This
has
got
a
number
of
risks.
It's
two
days
for
the
payee
to
send
us
the
money
in
two
days
for
us
to
get
the
payee
the
beneficiary,
the
final
beneficiary,
their
money.
B
There's
two
days
of
credit
risk
as
I
see
it
that's
two
days
too
long
for
someone
to
go
bankrupt
and
for
the
money
to
just
never
arrived,
so
what
we
would
be
able
to
do
if
there
were
national
currencies
on
the
blockchain
is
for
someone
to
say,
look
I've
got
some
digital
sterling
already
you'd
hope
they
have.
It
already.
You'd
hope
that
this
stuff
was
kind
of
in
circulation
and
being
used,
and
we
say:
okay,
fine,
we'll
use
a
smart
contract
to
act
almost
like
an
escrow.
Two
parties
can
simply
put
there.
B
You
know,
put
their
sterling
in
one
side
there,
euro
in
the
other
side
and
can
just
exchange
instantaneous
settlement
and
accept
McNiff
risk,
no
credit
risk
and
it's
instantaneous,
which
is
pretty
nice.
Everyone
gets
their
money
straight
away,
brilliant,
so
additional
benefits,
though,
specifically
of
actual
the
national
currencies
on
the
blockchain
or
the
fiat
currencies
on
the
blockchain.
Are
things
like
this?
The
Nick
talked
about
one
of
the
first
things
that
came
up
for
the
British
government
when
they
were
looking
at
the
use
of
blockchain
technologies
was
conservative
government.
B
How
that
we
cover
making
sure
people
can't
spend
their
benefit
money
on
things,
they
shouldn't
be
spending
a
lot.
So
this
is
a
pretty
interesting
way
of
being
able
to
do
this.
This
means
that
if
you
were
to
take
this
national
currency-
and
you
were
to
you,
know
to
wrap
it
in
various
smart
contracts,
you
can
start
to
do
some
very
powerful
things
with
it.
B
You
can,
if
you
want
to,
and
if
that's
deemed
appropriate
you
can
control
where
the
money
is
spent,
not
to
mention
all
of
the
other
interesting
things
you
can
do
with
it.
If
anyone's
familiar
with
foreign
currency
markets,
people
regularly
want
to
buy
or
sell
money
based
on
sorts
of
triggers.
You
could
use
oracle
eyes
or
something
else
to
you
know
to
trigger
events
that
occur
and
move
money
based
on
the
back
of
those
events,
there's
all
sorts
of
cool
things.
B
Whilst
we
hold
there's
nothing
revolutionary
going
on
there,
but
finding
someone
who
is
prepared
to
do
that
who
understands
the
banking
sector
who
understands
the
earth
it
enough
kind
of
ability
to
interact
with
the
regulators
or
the
background
to
interact
with
the
regulators.
Those
things
have
not
yet
been
come
bind
there
are
certain
competitors
out
there
to
products
like
this,
but
none
of
them
have
regulatory
oversight.
B
Probably
one
of
the
most
significant
companies
is
based
in
Panama
sounds
like
great
for
them,
but
probably
not
so
great
for
me,
so
I'm
going
to
try
and
kind
of
rattle
through
here,
but
you
know
real
money
on
the
blockchain
it
provides.
You
know
all
sorts
of
benefits.
I
mean
here,
we're
talking
about
providing
private
sector
alternative
in
a
regulated
fashion.
B
Regulators,
an
alternative
for
AP
is
exactly
I
mean
this
is
this.
Is
one
thing
try
and
like
this
Nick
mentioned
actually
trying
to
get
banks,
it's
very
easy
to
find
an
API
where
someone's
going
to
be
prepared
to
FX
and
head
your
FX
market
risk,
it's
very
difficult.
Finding
a
bank
that's
actually
going
to
be
prepared
to
set
all
those
currencies,
extraordinarily
difficult
to
settle,
say
Garnon
or
kenyan
shilling,
for
example.
B
You
could
start
doing
that
with
this
with
you
know,
considerably
greater
ease
with
considerably
greater
protection
again,
removing
that
credit
risk,
which
is
often
a
concern
in
those
areas
Internet
of
Things
microtransactions.
It
enables
micro
transactions
in
a
way
that
you
know
has
just
not
been
done
before
you
can
do
micro
transactions
with
any
cryptocurrency
I
guess,
but
it's
not
back
to
buy
central
bank.
It's
not
a
real
currency.
It's
not
necessarily
something
that
anybody
outside
of
this
room,
for
example,
would
want
to
carry
around
with
them.
B
B
They're
going
to
have
the
money
in
their
bank
account
the
notes
in
their
pocket
and
maybe
the
national
currency,
on
that
phone
for
an
exchange
on
the
blockchain,
something
you
can
do
off
the
back
of
this
again,
automated
via
smart
contracts,
but
I
went
necessarily
dwell
on
that
too
much,
but
again
it
makes
the
remittance
market
particularly
interesting,
transferwise
claim
to
be
able
to
peer
to
peer
match.
You
love
your
effects.
You
would
no
longer
need
transferwise
to
peer
to
peer
match
your
effects.
B
A
You
sort
of
trying
to
draw
comparisons
like
oh,
are
they
a
little
bit
like
like
this
one
company
or
this
one
company?
We,
we
think
we're
a
little
bit
like
each
one
of
the
companies
listed
there
with
some
and
with
each
one
of
them.
In
comparison,
we
have
some
differentiating
factors
again,
being
all
shore
regulated
on
a
public
block
chain
and
and
what
you
see
on
the
other
side
of
the
slide
is
to
market
size.
The
current
global
you
know,
market
size
for
the
payments
industry
mean
it's,
it's
huge
650
billion
pounds
per
day.
A
A
You
know
this,
this
is
so
going
back
to
our
business
model.
We've
come
from
sort
of
conventional
fx2
to
FX
done
by
AP
ice,
and
we
do
believe
the
future
is
effects
on
the
blockchain.
I
mean
we'll
see
in
the
next
two
to
three
years.
If
it
doesn't
materialize,
then
we'll
have
to
substitute
FX
on
the
block
chain
with
something
else,
but
for
the
moment
we're
quite
bullish.
D
A
So
I
mean
if
you're
interested
in
our
company
history
I
mean
this
is
public
information.
We've
put
it
on
here
for
everybody
to
get
an
idea
of
when
the
company
was
registered.
You
can
see
this
on
companies
house.
You
can
change
check
our
license
information
on
the
the
register
of
the
FCA,
and
you
can
see
we
by
the
way
something
I
forgot
to
mention.
A
Our
wonderful
management
team
and
if
you
want
to
get
in
touch,
that's
our
information,
so
I
think
at
this
point
we
will
open
to
Q&A
we're
going
to
pass
this
microphone
and
we
have
another
microphone
at
the
front.
So
I'm
not
sure
Nicole.
Do
you
want
to
run
up
the
stairs
with
microphone
or
how
we're
going
to
do
this.
C
B
Phase
with
the
fiat
currency
on
the
block
chain,
so
any
partners
that
we
partnering
with
right
now
we're
not
making
any
money
we
have
it.
We
have
an
existing
FX
business
that
makes
plenty
of
money.
This
is
the
start
is
as
an
R&D
project
for
us,
which
is
now
getting
increasingly
serious
and
we
would
look
to
commercialize
in
the
future,
but
right
now
we're
not
in
terms
of
your
first
question.
The
aim
really
is
to
allow
anybody
to
put
their
hands
on
the
fiat
currency,
not
anyone
in
particular.
B
The
idea
is
that,
if
you,
it
really
is,
I
do
I
keep
coming
back
to
this
concept
of
these
banknotes.
If
you,
if
you
leave
some
digital
sterling
with
us
or
if
you
so,
if
you
leave
some
real
sterling
with
us
or
some
real
euro
with
us,
we
will
give
you
the
corresponding
one-to-one
value
in
the
digital
tokens,
with
the
promise
that
we
will
exchange
them
back.
If
you'd
like
to
do
so
in
the
future.
B
B
Corresponding
value
to
the
pound,
so
economically,
the
reason
you
have
to
retain
a
full
Reserve
and
so
absolutely
everything
we
can't
do
anything
with
that
money.
Pardon
I,
wouldn't
know.
Sorry,
you
don't
need
an
exchange
price
I'm
saying
if
you
give
me
five
pounds,
I
will
give
you
tokens
worth
five
pounds
and
like
the
central
bank,
if
I'm
going
to
hold
your
five
pounds
in
reserve,
your
tokens
now
have
value
of
five
pounds
in
the
same
way
that,
historically,
you
would
give
your
gold
to
the
central
bank.
B
They
would
issue
you
with
a
note
that
you
can
carry
around
and
you
can
spend
and
you
can
return
for
your
gold
at
a
point
in
time.
It's
just
that
here
you
would
peg
it
one
to
one
and
it's
the
full
reserve
that
allows
us
to
hopefully
retain
that
value.
Hope,
there's
always
a
small
chance
that
they
trade
a
premium.
That
we'll
see.
E
B
B
B
C
B
So
now
I'm
at
risk
of
people
throwing
things
up
even
my
background.
Prior
to
this,
I
spent
seven
years
of
goldman
sachs.
There's
absolutely
no
reason
why
you
couldn't
load
Golden's
up
with
a
bunch
of
stuff
like
JP
Morgan
load,
maybe
the
other
ten
kind
of
leading
FX
banks
on
the
street.
Up
with
this
and
from
an
interv
and
settlement
point
of
view,
they
just
settle
between
themselves
using
this
stuff
instantaneously.
B
F
I'm
not
sure
I
really
understand
the
credit
risk
side
of
things.
When
you
put
the
pounds
that
you
receive
in
a
bank
account
which
bank
account
are
you
putting
it
in
and,
and
you
say
it's
segregated,
and
that
you're
working
with
the
regulator
does
that
mean
they're
backing
it
and
guaranteeing
it
or
what
I
mean?
Isn't
there
still
a
risk
of
the
bank's
liquidity,
which
I
mean?
Can
you
can.
B
You
have
the
information
on
custody
risk,
so,
okay,
so
the
credit
risk
I'm
really
talking
about
is
current
existing
credit
risk.
If
you
doing
you
and
I
do
an
FX
trade
right
now,
for
example,
we
agree
on
the
price
of
euro
dollar
I'm,
going
to
give
you
some
euros,
you're
going
to
give
me
some
dollars,
but
there's
not
actually
an
expectation
for
me
to
deliver
you,
those
euros
or
you
to
deliver
me
those
dollars
until
two
days
time,
which
means
we
can
have
agreed
a
rate.
B
That's
the
credit
risk
until
you
know
I'm
talking
about
my
exposure
to
you
once
we've
done
the
effects
in
the
context
of
the
bank
that
where
we
hold
the
money,
yes,
our
clients,
people
who
use
this
product,
they
are
exposed
to
that
manky
and
the
bank
will
be
regulated.
There
will
be
protection
if
you
know
from
the
bank
under
standard
fco
regulation,
but
let's
be
honest,
if
we
put
all
of
our
money
with
Lehman
Brothers
and
they
completely
vanish,
it's
going
to
take
a
few
years
for
administrators
to
sort
that
all
out.
B
So
there
is,
you
know
there
is
an
element
there.
What
we
would
love
to
be
able
to
do
is
store
our
money
with
a
central
bank
and
the
bank
of
england
are
talking
about
potentially
opening
up
bank
accounts,
but
we
think
there
are
a
little
way
away
from
them.
Hopefully,
if
we
go
to
market
with
something
like
this,
it
might
kick
them
into
gear
a
little
bit
Nikki.
You
can
take
a
few.
G
H
My
name
is
Daniel,
so
my
question
is:
if
I
I'm
interesting
the
remittances
marking
right
and
I
I,
don't
really,
perhaps
you
can
expand
a
bit
on
that
if
I
wanted
to
set
myself
up
as
a
as
a
competitor
to
western
union
right,
so
I
would
get
money
in
for
people
who
want
to
sent
to
the
granny
in
colombia
in
some
village
in
the
middle
of
nowhere.
How
do
I
work?
How
would
someone
like
that
work
with
you
in
this.
H
Know,
no
one
cares
about
how
the
money,
what
happens
they
just
care
that
the
money
that
the
money
comes
in
and
it
ends
up
with
their
granny
right.
So
what
would
I
do
you
know
that
use
case
as
someone
who's?
Basically,
in
effect
just
setting
themselves
up
as
a
money,
changing
business
or
something
selecting.
B
B
Your
specific
scenario,
your
grand,
would
have
to
want
digital
currency
right
or
you
know
you
would
need
you
would
need
a
model
which
could
emerge
in
the
future
where
she
could
then
exchange
that
money
locally
for
cash,
for
example,
you
would
imagine
that
that
was
that
was
probably
gonna
be
a
service.
Cash
machine
is
essentially
how
that
would
work,
and
we
do
have
partners
who
are
interested
in
rolling
out
cash
machines
for
this.
So
let's
envisage
a
scenario
where
you
know:
maybe
your
granny
lives
in
the
US.
B
H
B
H
B
Not
apart
from
the
fact
that
bitcoin
price
could
change
a
bit
in
48
hours
or,
however
long
it
takes
together,
it
depends
on
whether
you
from
in
that
context,
it's
no
different
from
bitcoin.
Apart
from
the
fact
that
one
of
them
is
bitcoin
and
one
of
them
is
pound
sterling
or
US
dollar,
and
there
are
some
differences
there
with
one
being
a
central
bank
backed
currency
and
one
of
them
being
a
standard
cryptocurrency.
B
I
A
Head
of
tether
tether
dollars,
so
if
you
trade
on
Polonia
x,
you
can
use
tethers
as
a
settlement
mechanism.
It's
conceptually
very
similar
I'm,
not
aware
if
they
hold
reserves
and
and
how
they
hold
them
and
what
they
regulate
if
they
regulate
it
or
if
they're,
onshore
offshore
I,
don't
know
so.
I
can't
comment
but
yeah
conceptually.
It's
very
similar.
A
I
My
name
is
Daniel,
so
much
so
my
question
is
about
how
you
operate
all
this
thing.
Let's
say:
you've
said
that
you
have
a
secret
account
for
every
customer
and
more
or
less
you
have
to
balances
one
on
the
account
another
one
in
in
tokens
on
smart
contracts.
Let's
and
the
transfers
and
tokens
are
settled
quickly
on
the
block
chain,
but
the
transfer
some
accounts
are
not
so
quick.
So
how
could
you
manage
to
do
to
ensure
that
these
balances
are
synchronized?
I
And
another
question
is,
let's
say:
I
receive
the
money
on
your
system
and
so
I've
got
the
settlement
on
the
blockchain.
So
I've
got
some
money
on
my
balance
and
talking
about
the
military,
I
would
like
to
get
money
from
that
account
itself,
but
you
didn't
settle
yet
so
how
you
handle
this
situation
too.
So.
B
This
is
it:
let's
take
the
first
one.
Actually,
let's
take
the
second
one,
your
if
the
money
has
not
actually
physically
reached
us
yet
then,
yes,
you
are
limited.
There
is
a
kind
of
a
loose
idea
here.
That's
may
feel
we're
hopeful
that
you
know
when
you
want
your
digital
currency,
your
you
are
in
the
long
term,
people
will
keep
their
digital
currency
and
that's
what
will
be
used.
So
yes,
if
you,
when
you
send
us
the
money,
there
could
well
be
a
24-hour
delay
and
you
sending
us
the
money.
B
You
won't
get
your
tokens
until
we've
got
the
money
and
when
you
want
your
money
back,
it
could
take
us
24
hours
for
you
to
get
you.
You
know
the
cash
into
your
bank
account
in
that
case,
is
you
know
there?
Is
some
settlement
delay?
Yes,
definitely
again.
The
implicit
assumption
here
is
that
you
want
those
tokens,
because
you're
going
to
keep
them
for
a
period
of
time.
B
Does
that
does
that
make
sense,
yeah,
okay,
so
cool?
So,
in
terms
of
the
first
one
you
know,
what
we're
really
interested
in
is
is
again
like
releasing
the
bank
notes
into
the
wild.
What
we
care
about
is
making
sure
that
the
total
number
of
tokens
and
circulation
matches
the
total
amount
on
the
bank
account
and
that's
actually
very
easy
check
to
do.
You
can
simply
inspect
the
blockchain
fair
to
see
how
many
tokens
there
are
in
existence.
B
I
I
B
Settlement
of
the
tokens
is
instantaneous,
and
if
people
want
those
tokens
and
they
can
be
used
for
other
things,
then
there's
value
you
know,
which
is
why
we're
working
with
ATM
providers
were
working
with
gay
payment
gateways,
we're
working
with
merchants
who
would
potentially
accept
them,
so
they
become
a
commonplace
currency
that
is,
is
used
across
the
board.
But
if
you
want
to
say,
do
an
FX
transaction
and
you've
got
to
wire
me
the
sterling
we
wait
until
we've
got
it.
B
A
Mean
just
well
from
my
side,
so
we're
working
on
the
assumption
that,
in
the
future,
central
banks
will
willingly
want
to
issue
digital
currency
on
a
blockchain
either
they're
on
blockchain
or
the
etherion
blockchain
or
some
other
blockchain.
So
in
the
future
a
lot
of
these
things
will
be
just
natively
possible.
But
until
then
we
would
like
to
be
able
to
take
care
of
this
in
the
private
sector
and
hopefully
do
it
right
with
with
support
from
everybody.
A
A
So
in
theory,
once
you
have
the
tokens
you
know,
we're
working
with
merchants
want
to
accept
the
token
us
as
a
means
of
payment.
We're
working
with
a
you
know.
Existing
cryptocurrency
payment
gateways
were
in
addition
to
that
20
crypto.
They
want
to
add
a
stable
coin
like
ours
as
an
additional
option,
so
I
mean
we
have
to
build
out
the
whole
ecosystem
because
it's
just
not
there
at
the
moment.
So
in
the
future.
A
B
J
Hey
guys
so
talking
about
this
from
a
trading
perspective,
so
say,
for
example,
you
know
say,
for
example,
all
the
streets
on
the
bank
sign
up
to
this.
Let's
say
all
the
banks
on
the
street
sign
up
to
this:
they
each
have
digital
sterling
hero
dollar
yen,
for
example.
They
all
train
trade
between
themselves,
so
the
exchange
rates
will
essentially
be
defined.
Otc,
okay,
they'll
trade
with
each
other
and
eventually,
as
it
starts,
becoming
more
prominent
within
the
market.
Eventually,
exchanges
will
start
coming
up
to
determine
exchange
rates
between
your
digital
currency.
B
Is
all
OTC
across
the
board?
There's
it's
that
full
reserve
concept
so
economically,
there's
the
concept
of
a
partial
réserver
or
for
reserve
what
the
full
Reserve
does.
It
means
that
if
you've
got
your
tokens,
you
could
exchange
them
back
for
the
full
amount.
So
let's
say
you
find
someone
you're
able
to
buy
them
for
eighty
eight
pence
on
the
pound.
Then
that's
like
the
world's
greatest
arbitrage
opportunity,
because
you're
going
to
wanna
I
highly
recommend
you
go
out.
B
You
just
buy
as
many
of
those
guys
as
you
possibly
can,
because
you
can
exchange
them,
for
you
know
considerably
more
worth
when
you
come
back
to
us
and
get
your
money
back
so
thats,
what
stops
it
happening?
The
market
just
stops
it
from
happening.
Anybody
that's
prepared
to
sell
you
them
at
a
discount
is
a
real
idiot.
B
B
D
Quick
questions:
how
about
this?
Let's
say:
you've
got
10
million
pounds
worth
of
coins
in
circulation,
so
on
sends
a
million
pounds
to
buy
million
pound.
With
for
your
tokens,
the
bank
recalls
that
money,
because
it
was
fortunately
transferred
to
you
what
you
have
a
credit
risk
of
like
a
million
pound
hole
in
your
book
and
your
currency
is
unbalanced
by
that
time.
So.
B
In
that
situation,
you're
talking
about
the
money
hits
our
bank
account.
We've
got
the
million
pounds,
we
issue
the
tokens,
but
the
bank
issues
re
cool
right.
At
that
point
we
go
into
negotiation
with
the
bank.
We
can
also
pull
those
tokens
back
if
we
really
want
to
like
we
have.
As
the
issuer.
Like
I
said,
we
act
like
a
central
bank.
B
That's
a
very
good
point,
so
at
this
point
we
need
tools
to
track.
You
know
what's
going
on
and
how
to
pull
this
back,
but
that's
exactly
why
the
FCA
is
involved,
that's
exactly
the
same
model
as
I.
Why
you
some
euros
you?
Why
me
some
sterling
and
then
someone
recalls
it
that
actually
just
doesn't
happen
when
you're
talking
about
million
pounds.
B
Sorry,
no,
it
doesn't
know
I
wouldn't
have
a
Bitcoin,
because
well
it's
Bitcoin
and
in
this
specific
scenario
day
there
are
regulatory
agreements
in
place
to
handle
those
kind
of
situations
in
exactly
the
same
way
as
if
I
were
you
the
corresponding
amount
of
euros.
You
are
me
the
sterling
and
then
the
bank
like
makes
a
recall,
but
actually
in
the
kind
of
banking
infrastructure.
Weird
talking
about
that
doesn't
happen.
Like
one
bank
can't
just
recall
from
a
bank
account
a
million
bounce,
they
would.
B
B
But
that's
an
interesting
question:
do
you
people
like
the
fact
that
we're
back
fire
regulator
and
the
regulator
might
say
freeze
the
assets,
freeze,
freeze
the
million
pounds,
freeze
the
assets
or
wanna
know.
What's
going
on
or
someone
gets
wind,
a
government
gets
wind
that
there
may
be
moving
to
someone
on
our
sanctions
list.
Freeze
the
assets,
here's
all
no
legal
stuff
to
say
you
need
to
do
I'm.
I
H
B
D
A
A
We
are,
we
are
we're
very
much
be
to
be
so
we
don't.
We
don't
deal
directly
with
consumers.
Some
of
our
partners
may
have
may
may
have
consumers
and
they
have
to
manage
those
relationships,
and
we
work
very
closely
with
the
FCA
and
they
do
want
to
understand
every
step
of
the
way.
What
are
the
risks?
How
is
the
ultimate
consumer,
protected,
etc?
A
So
the
bay
at
the
point
is
that's.
Why
we're
working
very
direct
closely
with
the
regulator
we're
not
trying
to
do
this
behind
their
backs
or
or
or
in
a
offshore,
unregulated
environment?
The
other
thing
is
because
I,
you
know
I
think
I'm
a
big
fan
of
Bitcoin
by
the
way
I
have
Bitcoin
on
my
phone
I
think
it
has
its
uses,
but
in
terms
of
mass
adoption,
I've
given
lectures
on
Bitcoin
two
years
ago,
three
years
ago,
four
years
ago
to
various
audiences
and
some
of
the
questions
that
always
come
up
is
well
who's.
A
This
bag,
by
which
government
is
backing
this.
You
know
what.
How
is
this
regulated?
You
know
what,
if
the
exchange
runs
away
with
my
money
who
guarantees
the
exchange
rate,
etc.
So
we
try
to
you
know
my
bitcoins
great
I.
Don't
have
a
problem
with
it,
I
use
it.
I
recommend
it
to
people,
but
it
has
some,
let's
say
niche
applications
in
my
view,
and
what
we're
trying
to
do
here
is
to
issue
you
mentioned
the
word
security
from
a
regulatory
perspective.
What
we're
trying
to
do
is
called
emoney,
which
is
a
different
regime.
It's.
F
G
Hi
blog
Paul
and
one
of
the
announcements
that
was
made
at
Def,
Con
and
Shanghai
recently
was
by
santander,
who
seemed
to
be
doing
something
quite
similar
to
this
I'm
afraid
I
wasn't
there.
So
if
anyone
can
help
me
understand,
is
what
you're
doing
the
same
or
if
they,
if
not,
were
the
differences
so.
A
B
L
Thank
you
just
one
quick
question
about
kyc
and
do
people
who
deposit
and
withdraw
money
are
the
only
people
who
have
to
be
kyc
in
your
system
or
do
any
any
recipient
of
the
token
have
to
be
KY
seed
and
one
more
question:
can
anyone
become
KY
see
if
I
live
in
Nigeria
say?
Will
you
KY
see
me
or
are
there
limits
to
that
as
well?
Thank
you.
L
B
Those
interacting
with
us
need
to
be
ki
see.
So
if
you
want
tokens-
or
you
want
to
retrieve
tokens
they're,
the
only
points
of
kyc
required
same
as
with
your
bank
again
back
to
cash.
If
for
in
order
to
open
the
bank,
account
they're
going
to
KY
c
check
you
once
you
pull
your
cash
out
of
your
bank,
account
do
whatever
you
like
with
it,
and
there
are
no
fees
well,
there
are
no
fees
right
now,
so.