►
Description
US Digital Currency: Opportunities, Challenges and Strategies - Jim Mason, DTCC
Working in the DLT / blockchain space delivering solutions on different platforms, Jim will review the digital currency landscape with a focus on FinTech solutions for CBDC ( Central Bank Digital Currency ) in the US. CBDCs have been researched by many countries and a few have implemented a CBDC. With the US Executive Order in March 2022, the goal is now to understand the value of a US CBDC in the economy, financial markets and trade and recommend how a CBDC should be implemented. We will identify CBDC directions from the Executive Order and the research the Federal Reserve and other organizations delivered. The Digital Dollar Project, a partnership of Accenture and the Digital Dollar Foundation, is leading the discussion and exploration on US CBDC with other organizations including DTCC. We’ll review work on a Fed Coin, the Hamilton project ( OpenCbdc ) reviewing scalable architecture concepts for a CBDC and the Lithium project ( part of the Digital Dollar Project ) which uses CBDC for immediate settlement of security trades between parties that can be regulatory compliant. Attendees will get a deeper understanding of the goals, challenges and potential benefits of US CBDC.
Sessions Details & Slides (if available): https://sched.co/14H6h
Access All Sessions: https://events.linuxfoundation.org/hyperledger-global-forum/program/schedule/
----
Hyperledger – Open Source Blockchain Technologies
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License
Creative Commons Attribution license (reuse allowed)
A
A
Can
we
do
that
so
at
dtcc
I'm
not
going
to
cover
everything
they
do
here,
but
they've
already
got
projects
in
place
that
have
already
been
publicly
announced
about
ion,
which
is
trying
to,
in
a
sense
say:
We'll,
settle,
Securities
on
a
blockchain
automatically
and
we'll
tokenize
the
Securities
and
settlement
through
a
blockchain,
as
opposed
to
the
current
way.
It's
done
today.
A
So,
wherever
your
whatever
stock
you
own
directly
or
indirectly,
somebody
is
probably
a
custodian
for
that
stock.
You
know
some
company,
and
so,
if
you're
in
the
digital
asset
space,
one
of
the
as
a
provider,
one
of
the
things
you
have
to
do
is
solve
the
custody
problem.
How
do
I
in
a
sense
custody
all
of
your
investments
in
Bitcoin
or
whatever?
It
is
so
anyway.
That
said,
if
you
look
at
the
kinds
of
financial
assets
involved,
you
could
be
talking
about
Bitcoin
ether
or
some
other
crypto.
A
You
can
be
talking
about
things
like
stable
coins,
right
that
are
not
as
volatile
they're
pegged
to
a
fiat
currency
of
some
type.
Like
it
could
be
tether,
USD
coin
or
some
of
the
other
ones,
in
our
case,
we're
taking
real
Securities
like
IBM
stock
and
saying,
let's
make
that
we'll
tokenize
that
and
so
that
becomes
an
asset
that
we're
going
to
track
that
way
and
then
Central
Bank
digital
currencies,
which
there
are
a
few
of
them
in
the
world
that
have
been
announced.
A
Most
of
them
haven't
been
successful
to
date,
but
they're
out
there
I
can't
remember
it
was
Nicaragua.
One
of
the
Central
American
countries
has
already
done
that.
They
said
that
they
made
a
legal
tender
out
of
a
digital
currency
down
there,
which,
unfortunately
hasn't
worked
out
well
today,
but
it
doesn't
mean
that
it
won't
in
the
future,
so
Central
Bank
digital
currencies.
A
Lots
of
countries
are
looking
at
that
lots
of
companies,
countries
have
already
gotten
experiments,
and
most
of
them
are
farther
ahead
than
the
US
I'll
say
the
bigger
economies
that
are
focused
on
it
and
U.S,
as
often
is
the
case
in
financial
Innovation.
As
a
government,
we
tend
to
lag
behind,
so
individual
companies
in
the
US
are
Innovative,
but
at
the
government
level
we're
usually
not
a
leader
in
pioneering
new
Financial
products
or
Services
physical
asset
proxies.
That's
another
thing.
A
A
It's
not
in
production
yet,
but
we
had
a
very
successful
MVP,
but
she
as
the
Secretary
of
Commerce,
there's
a
whole
bunch
of
use
cases
in
the
state
that
we
don't
cover
for
things
like
Land
Titles
cars,
vehicle
registrations,
all
that
kind
of
stuff,
they're,
easy
candidates
to
use
the
same
technology
and
the
same
services
and
by
the
way,
the
stuff
in
the
state
of
Rhode
Island,
was
all
built
using
the
hyperledger
platform,
so
Indy
Aries,
Ursa
and
then
I
was
so
brilliant.
As
the
project
manager.
That
I
said
hey.
A
If
we
stole
all
that,
why
don't
we
steal
more?
So
we
went
and
stole
everything
from
British
Columbia
that
they
produced,
which
is
brilliant
work,
so
we
took
the
whole
virtual
organizations
Network
and
started
as
our
starting
point
instead
of
down
here.
We
grabbed
all
that
too,
and
so
it
made
the
whole
licensing
problem
super
simple.
So
it
took
an
emphasis
team
four
months
from
start
to
finish,
to
get
the
whole
thing
up
and
running
in
the
state,
which
is
pretty
amazing.
A
But
again
that
was
the
Head
Start,
not
only
hyperledger,
but
British
Columbia
trust
over
IP
that
whole
organization
open
sourcing.
Everything
made
a
world
of
difference,
so
it's
a
commercial
for
how
brilliant
I
am
that
I
knew
that
I
should
be
going
after
open
source.
So
that's
my
that's.
My
resume
is
I'm
smart,
because
I
know
how
to
shop
rather
than
build
something
from
scratch,
but
service
access
asset
proxies,
so
events
that
kind
of
stuff
make
sense
rights
assets
as
well.
So
in
the
Arts
world
we
have.
A
A
We
also
have
different
types
of
digital
wallets
out
there,
that
you
can
store
in
files
on
your
phone
or
Enterprise
wallets
that
go
onto
an
Enterprise,
but
those
Enterprise
wallets
can
store
different
types
of
token
types:
digital
credentials,
certificates,
all
that
kind
of
stuff
they're
designed
for
that,
and
you
have
different
types
of
wallets
with
different
capabilities
and
also
different
strengths
and
weaknesses
out
there.
So
I've
had
friends
that
have
had
like
a
metamask
wallet
and
say:
oh
all,
my
nfts
got
stolen
the
other
day.
A
Yes,
that
does
happen
so
any
Financial
system,
whether
it
be
digital
or
not,
traditional,
always
has
a
risk
of
theft
and
loss
and
that
kind
of
stuff-
and
we
the
difference,
is
the
better
ones,
actually
have
insurance
a
pretty
cool
idea.
How
would
it
be
Isn't?
It?
Nice
that
some
of
the
things
are
insured,
so
as
an
example
dtcc,
when
we
settle
trades
once
we
receive
a
trade.
If
we
have
received
the
trade
and
not
settled
it,
we
actually
ensure
that
for
loss
in
a
sense.
A
So
if,
for
some
reason
it
couldn't
be
settled,
we're
covering
that
trade,
which
is
a
it
should
make
all
of
you,
breathe
easier
about
your
401ks
a
little
bit
a
little
bit
anyway.
We
can't
stop
the
market
from
going
up
and
down.
We
don't
help
with
that
at
all,
but
it's
important
to
think
about
risk
and
how
you
mitigate
risk
in
this
world,
so
fungible
tokens.
A
Many
sessions
have
already
talked
about
that
they're
all
the
same
type,
so
one
Bitcoin
isn't
worth
more
than
another
Bitcoin,
for
example,
a
non-fungible
token,
you
think
of
things
like
works
of
art
that
are
unique
or
you
know,
different
domain
names
on
the
internet.
I
have
a
couple
of
domain
names:
I
can
sell
those
they
have
different
Market
values
and
so
on.
I
could
issue
tokens
on
those
if
I
wanted
Anthony
day
from
IBM
gave
us
a
quick
chart
here
that
I
included
in
the
handout
on
ethereum
token
standard
types.
A
You
know
things
like
warrants
that
have
callable
rights
and
all
of
that,
so
this
token
type,
the
token
types
token
standards
are
going
to
continue
to
evolve.
There's
no
question
of
that
token
economy.
I'll
grab
some
better
ideas
from
Andy
Martin
at
IBM,
who
has
been
tracking
the
space
for
probably
four
or
five
years
in
detail.
If
you
follow
him
on
LinkedIn,
but
we
tokenized
digital
assets
on
the
left
there,
you
can
see
features
of
a
token
economy.
Is
you
have
digital
assets
represented
by
a
token
they
can
be
represented
by
anything?
A
These
could
be
physical
assets,
so
in
the
manufacturing,
space
or
supply
chain,
we
represent
real
products
and
things
with
tokens
now
to
make
them
easy
to
track
and
trade
on
a
digital
model.
Digital
wallets,
we
talked
about
those
blockchain
or
DLT,
is
a
distributed
Ledger
or
permanent
transactions
on
a
network.
So
we
already
all
know
that.
That's
where
we're
here.
Smart
contracts
are
just
a
program
that
executes
on
a
blockchain
or
DLT
that
usually
enforces
contract
terms
between
different
parties.
A
So
when
I
trade
an
asset
like
a
Bitcoin
from
you
to
me,
there's
rules
around
that
governance
and
so
on.
If
I
buy
something
sell,
something
create
something
whatever
all
of
those
smart
contracts
usually
have
some
sort
of
a
I'll
call.
It
governance
set
of
terms
or
regulations
that
govern
how
that
smart
contract
is
supposed
to
work
and
then
marketplaces.
So
I
built
a
couple
of
marketplaces
for
energy
trading,
one
for
vehicle
identity
and
a
few
others
based
on
hyper
Ledger
fabric.
A
There's
other
blockchains
Corda
there's
you
know
ethereum
using
the
basic
clients
here,
there's
lots
of
options
within
the
hyperledger
community
and
even
more
blockchains
out
outside
of
hyperledger.
So
we
have
lots
of
different
marketplaces
built
on
lots
of
platforms
and
some
of
the
other
sessions
here
on
Cactus
and
some
of
the
other
things
we'll
talk
about
the
idea
that
these
blockchains
don't
interoperate
well
for
the
most
part,
and
so
there's
different
models
on
how
to
do
that.
A
I'll
get
into
one
of
the
examples
we
had
at
dtcc,
where
we're
working
on
this
model
for
project
lithium
on
cbdc,
but
you'll
see
the
idea
that
there's
two
different
networks
operating
and
somehow
you've
gotta
in
a
sense
have
transactions
across
two
Networks
anyway,
in
the
token
economy,
as
Andy
Martin
summarizes,
it
you've
got
the
digital
assets.
You've
got
smart
contracts
blockchain
and
actually
what
Andy
points
out
since
his
background
is
an
accountant.
He
says
that
really
blockchain
the
point
from
his
perspective.
Blockchain
is
primarily
a
governance
system.
A
From
my
perspective,
as
an
engineer
and
I'm,
a
data
engineer
by
trade,
you
know
for
many
years
before
I
came
into
blockchain
is
what's
different,
is
I
look
at
blockchain
as
data
engineering
across
a
network
except
that
we're
also
adding
trust
engineering
on
top
of
that
and
that's
a
big
difference.
So,
as
a
data
engineer,
all
I
ever
worried
about
is,
do
I,
have
good
data
and
did
I
send
him
good
data.
If
I
was
happy
that
I
sent
good
data,
my
responsibility
ended
there.
I
didn't
give
a
damn
what
happened
to
him?
A
So,
anyway,
that's
the
view
of
the
token
economy.
If
we
take
a
look
really
quickly.
So
how
does
this
work
in
the
industry?
We
have
banking,
we
have
exchanges
and
we
have
custodians
if
you
will
so
banking,
digital
banking,
there's
actual
real
digital
Banks
out
there,
Time
new
bank
bit
bank
and
so
on.
A
My
nephew
actually
is
the
chief
Bitcoin
officer
for
bitbank,
so
he
has
the
responsibility
of
making
sure
that
I
think
it's
three
percent
of
the
world's
Bitcoin
is
properly
managed
in
his
bank
and
so
he's
the
guy
that
writes
the
he's,
a
Bitcoin
committer
and
an
ethereum
committer.
So
he
wrote
the
ethereum
some
of
the
ethereum
wallet
code,
but
the
people
that
run
those
Banks
tend
to
be
very
technical
in
what
I
call
the
defy
space
and
coming
up
with
what
I
call
new
Innovations
on
wallets
and
so
on.
A
Existing
Banks,
though
now
over
the
last
couple
years,
really
are
seriously
interested
in
saying
hey.
You
know
in
the
case
of
dtcc,
we've
always
traded
Securities,
but
we
now
want
to
be
in
digital
assets
too.
Our
customers
do
anyway,
and
if
your
Citibank
or
JP
Morgan
or
one
of
the
larger
U.S
banks,
you're
going
to
say,
hey,
we
don't
want
to
have
our
customers
go
somewhere
else
to
buy
and
sell
digital
assets.
We
want
them
to
do
it
through
us,
so
one
way
or
another
Citibank
and
others
are
now
saying:
hey.
A
We
got
to
reach
out
and
be
able
to
be
marketplaces
for
digital
assets,
not
just
tradition
ones
as
well.
So
exchanges,
of
course,
are
online
markets
like
coinbase
and
others
where
you
could
actually
go,
buy
and
sell
either
Bitcoin
or
any
other
kind
of
cryptocurrency.
And
then
finally,
you
have
custody
services
that
are
sometimes
independent
of
both
the
banks
and
the
exchanges
and
custody
services
that
exist
out
there
like
fire
blocks,
copper,
Ledger,
Anchorage,
they're,
all
different.
A
Some
of
them
actually
are
registered
custodians
in
different
legal
jurisdictions
and
other
ones
really
give
you
a
framework
in
a
sense,
but
don't
take
legal
responsibility
for
custody
of
those
assets.
So
there
are
difference
in
the
custodians
in
terms
of
the
services
they
provide,
but
it's
a
it's
an
interesting
thing
to
go
through
and
look
at
them.
A
So
the
question
there's
a
lot
of
questions.
If
you're
going
to
be
dealing
in
this
space
from
a
financial
services
perspective,
I've
got
a
long
list
of
questions.
I
won't
go
through
those
individually,
but
you
basically
have
to
ask
what
what
you're
investing
in
do?
You
know
what
your
providers
can
be
trusted
with
so
at
DTC
right
now,
we're
looking
at
some
of
the
outside
service
providers
in
terms
of
their
capabilities
and
we're
asking
a
lot
of
these
questions
about
what
they
can
or
can't
do,
whether
or
not
they're,
unregulated
or
regulated.
A
A
The
fact
that
I'm
using
a
service
provider
and
they're
insured
isn't
really
going
to
help
me
at
the
end
of
the
day,
when
I
have
a
legal
obligation
to
him
in
most
cases
in
the
U.S,
the
fact
that
the
custody
provider
may
be
regulated
and
or
insured
to
some
level
isn't
going
to
protect
him
and
other
customers
from
making
claims
directly
against
me.
So
a
lot
of
times,
I'll
quote
the
advertising
is
better
than
the
reality.
If
you
will
of
what
a
digital
custody
provider
can
do
for
you,
so
we
talked
about
that.
A
We'll
talk
about
taxation
so
because
we're
in
the
world
of
Finance
every
government
only
exists
for
first
purpose
is
collecting
your
money.
They
have
other
motives
in
mind,
but
the
first
thing
is:
we
need
your
money
so
that
we
can
do
anything
else
that
we
want
to
accomplish
so
understand
that
taxation
is
I'll
call
it
a
primary
driver
of
every
strategy
by
every
government
and
governments
actually
compete
with
each
other
right.
So
you
have
foreign
countries
competing
with
the
U.S.
A
So
if
you
are
as
an
example,
if
you're
somebody
in
the
U.S
and
you've
done
well-
and
you
want
to
retire-
and
you
have
money-
there's
lots
of
countries
that
would
love
to
see
you
move
there
and
bring
your
assets
with
you
and
spend
your
money
over
there
as
opposed
to
staying
in
the
U.S.
So
they
provide
strong
economic
incentives,
a
lot
of
times
around
Taxation
and
other
things
to
help
attract
business
and
the
same
thing
in
the
United
States.
A
You
see
that
one
state
competes
against
another
for
sure
trying
to
get
in
a
sense
business
and
in
a
sense
residents
to
move
there.
So
it's
kind
of
like
if
you
look
at
in
the
U.S
We,
compare
California
and
Texas
over
the
last
few
years,
there's
a
a
big
migration
out
of
California
and
a
big
migration
into
Texas
on
the
part
of
businesses
and
so
on
and
residents
as
well.
A
So
anyway,
people
organizations
are
subject
to
taxes
by
jurisdiction.
We
have
governments.
Tax
laws
in
effect
are
obviously
most
of
you
know
how
complex
they
can
be
and
also
how,
in
a
sense,
illogical,
they
can
be,
but
they're,
they're
legal.
So
it
doesn't
matter
how
illogical
it
is
if
it's
been
passed
and
it
hasn't
been
and
successfully
defended
itself
against
any
challenges
in
court.
You'd
say
it
doesn't
matter
how
complex
they
are.
They're,
legal
and
they're
required
to
comply
with,
but
taxes
obviously
are
based
on
income,
property
sales,
specific
taxes,
gas,
Alcohol,
Tobacco.
A
So
governments
do
differ
on
how
to
tax,
there's,
no
consistency
and
so
I
guess
your
opportunity
as
an
individual
or
business
is
to
say:
where
do
I
want
to
locate
and
what
jurisdictions
do
I
want
to
be
subject
to
you
see
all
the
time
you
know
companies
like
Amazon
say:
well,
we
we
don't
really
have
what
they
call
Nexus
in
this
state,
we're
just
shipping
stuff
through
there.
So
you
can't
really
tax
success
for
it.
A
Those
kind
of
things
they
do
pay
sales
taxes,
but
they
do
try
to
avoid
I'll
call
it
certain
other
kinds
of
regulations
and
taxes
where
possible.
So
that
happens
all
the
time
in
the
U.S.
So
as
I
said,
U.S
is
kind
of
strange,
there's
other
large
or
countries
that
also
have
States.
If
you
will,
who
also,
in
a
sense
wind
up
competing
internally
with
each
other
I,
think
one
of
the
things
the
U.S
is
doing.
Has
anybody
heard
of
the
global
minimum
tax?
A
It's
a
great
idea
that
we
had
here.
It's
like
okay,
so
in
the
U.S
we'd
like
to
raise
everybody's
taxes,
what
we
noticed
is
you
all
in
the
front
row
want
to
leave
and
go
to
places
that
have
lower
taxes.
So
the
brilliant
idea
is,
we
said:
hey,
let's
have
a
global
minimum
tax
so
that
every
country
has
to
charge
at
least
15
percent
of
your
income
as
a
base
minimum
tax,
and
if
we
do
that,
then
you'll
be
less
likely
to
want
to
leave
the
US
and
I
can
raise
taxes.
A
So
it's
a
fairly
transparent
scheme,
but
the
current
Administration
has
decided
to
push
a
global
minimum
tax.
So
it's
no
surprise
that
they
want
to
do
that.
It
hasn't
passed.
Obviously,
most
countries
are
resistant
to
the
idea.
They
come
back
to
the
US
and
say
no
that
that
takes
away
our
availability
to
compete
effectively.
A
So
countries
on
taxation
are
classified
regulated
on
digital
assets
and
they're
all
over
the
place.
Right
now,
so
most
countries
haven't
passed
strict
laws
yet
on
regulating
digital
assets,
some
have
some
have
outlawed.
You
know
things
like
cryptocurrencies.
Other
ones
have
said
that
they're
fine
as
legal.
You
know
assets
and
so
on.
In
the
U.S
we
even
have
fights
in
our
own
government,
which
is
kind
of
interesting,
so
the
cftc
says
that
they
think
cryptocurrency
should
be
a
commodity
and
there's
a
new
draft
bill
by
Senator,
Loomis
and
gillibrand.
A
Wasn't
a
study
it
put
out
a
finding
I
say
that
there
were
nine
cryptocurrencies
that
they
felt
were
violating
Federal
security
policies.
So
none
of
that's
resolved
and,
of
course,
the
secure
the
cryptocurrencies
couple
of
them
come
back
along
with
coin-based
exchange
and
said
no
we're
not
we're
really
cryptocurrencies
and
that's
how
we
are
so.
These
things
are
I'll
call
it
up
in
the
air
right
now.
U.S
treasury
in
the
U.S
has
a
responsibility
for,
in
a
sense
printing,
our
money
through
the
U.S
mint,
so
they
control
the
actual
fiat
currency.
A
So
there's
been
opinions
that
the
Federal
Reserve
should
control
that,
but
there
is
no
law
that
says
it
has
to
be
done
by
the
Federal
Reserve,
so
they
have
been
in
a
sense
investing
in
a
digital
dollar
since
2017
that
I'm,
aware
of
maybe
even
before
that
so
Innovations
and
securities.
So
a
couple
of
things
Deep
by
Finance,
we've
talked
a
little
bit
about
that.
But
basically
it's
all
these
new
Financial
products
and
services
built
on
tokens
using
smart
contracts
blockchain
and
what
they're
trying
to
do
is
you
hear
on
the
theory?
A
Is
that
we're
going
to
in
a
sense
disintermediate
the
existing
Financial
system
and
try
to
get
rid
of
it?
So
there's
in
life,
there's
always
a
theory
on
something
and
then
the
reality
that
doesn't
always
line
up.
So
the
theory
is
that
all
of
these
Financial
intermediaries
are
in
a
sense,
unproductive
unefficient
can't
be
trusted
and
they
cost
too
much
to
use.
A
So
we
should
get
rid
of
them
all
and
replace
with
just
peer-to-peer
transactions,
and
so
when
you
look
at
the
systems
that
are
out
there
in
the
D5
world
today
and
the
good
examples
would
be
like
uniswap
or
something
like
that:
they're,
not
purely
decentralized
but
they're
close
to
the
theory
of
decentralization
reality
is
yes,
it's
still.
It's
he
and
I
can't
trade
cryptocurrencies
directly.
We
have
have
to
use
a
platform
like
uniswap
to
do
that.
So
are
we
100
decentralized,
no
and
is
uniswap
perfectly
decentralized
as
a
network?
A
No,
but
they
they
attempt
to
be.
Let's
put
it
that
way,
so
uniswap
might
be
a
good
example
of
something
that's
highly
decentralized
as
an
exchange,
but
a
lot
of
the
other
ones
like
coinbase
and
so
on,
aren't
even
close
to
that,
and
they
don't
pretend
to
be
they're
just
exchanges
for
cryptocurrency
and
in
fact
they
have
more
much
more
of
the
market
than
something
like
uniswap.
So
they're
again,
the
theory
doesn't
line
up
with
the
ability
to
execute
well
all
the
time
or
the
ability
even
to
be
trusted.
A
So
that's
a
big
problem
and
it's
actually
a
problem
for
consumers
because
it
makes
Choice
difficult.
You
know
most
of
us,
like
me,
I
think
most
of
you
are
like
me:
you're
lazy,
lazy
people
don't
want
to
make
tough
decisions.
I
don't
want
to
think
about
it.
I
just
want
it
to
be
easy,
but
unfortunately
the
complexity
of
the
defy
Marketplace
and
even
the
traditional
finance,
a
Marketplace
is
complex
enough
that
it
makes
making
good
decisions
difficult.
A
So
one
of
the
challenges
is,
we
have
know
your
customer
anti-money
laundering
rules,
ofac
compliance
for
foreign
asset,
accounting
and
control,
and
so
on.
So
all
of
those
regulations
apply
in
the
U.S
and
certainly
most
European
countries
have
the
equivalent
of
those
regulations
in
place.
So
whatever
you're
doing
in
the
financial
space,
all
of
the
providers
who
are
in
the
financial
Network
have
those
responsibilities,
and
so,
when
you
have
other
exchanges
on
crypto
exchanges,
they
try
to
run
away
from
that
where
they
can.
A
But
in
reality
many
of
them
have
started
to
accept
the
idea
that
they
will
be
regulated
and
that
they
have
to
comply.
So
some
of
them
have
in
a
sense,
avoided
that,
and
other
ones
have
said
no.
Finally,
if
we
get
if
we
comply
with
the
existing
regulations
in
certain
jurisdictions,
we're
more
likely
to
be
accepted
as
a
place
to
do
business
with
than
if
we
avoid
those
regulations
where
there's
more
risk.
A
So
that's
a
a
big
challenge
right
now,
also
we
have
in
the
financial,
World
insurance
payments
and
Loans,
so
everybody's
talking
about
cross-border
payments
or
remittances
from
one
country
to
another.
That's
one
use
case,
but
any
type
of
payment
loans
also
fall
in
this
category
insurance
as
well
asset
management
of
any
kind
of
asset
and
then
digital
identity
and
credentials.
So
you
know
most
of
you
beyond
having
some
sort
of
legal
identity.
Whatever
country
you're
in
you
also
have
a
maybe
a
degree
from
a
high
school
or
a
college.
A
A
Smaller
countries
tend
to
innovate
faster
than
larger
countries,
countries
on
average
for
sure,
and
so
in
my
case
you
know,
Liz
tenner,
who
I
worked
with
at
Rhode
Island,
led
me
to
find
out
that
Estonia
was
one
of
the
leaders
on
the
planet
in
trying
to
do
digital
government
for
more
than
20
years
now
other
places
Luxembourg
Liechtenstein
they
have
one
of
the
most
Innovative
Financial
Innovation
laws
focused
on
blockchain.
They
were
smart
enough
to
even
future
proof.
A
Some
of
those
other
ones
have
certainly
done
more
on
crypto
as
well
on
regulation
and
support
and
European
Union
has
been
a
leader
on
studies
and
regulation,
as
they
say,
Europe
is
famous
for
regulating
everything
first
and
then
letting
somebody
else
innovate
it
so
there's
the
the
European
Central
Bank
is
has
a
lot
of
authority
over
regulating
Financial
systems
in
the
EU.
The
world
economic
Forum
also
provides
studies
on
a
lot
of
these
financial
and
digital
asset
issues.
A
I
also
am
part
of
the
European
blockchain
Observatory
and
forum,
and
we
wind
up
doing
research,
supports
research
reports
on
blockchain
initiatives
in
the
financial
sector
in
other
areas.
Our
reports
are
just
reports
that
are
publicly
available,
but
those
reports
wind
up
being
input
to
the
European
Council
when
they
consider
the
legislation
that
they
want
to
draft
foreign
and
then.
A
Finally,
the
big
thing
on
Innovation
was
the
U.S
executive
order
on
responsible
development
of
digital
assets
back
in
March
of
this
year,
so
the
Biden
Administration
issues
this
executive
order,
which
sounds
very
strong
in
what
the
order
was
but
effectively
the
order
didn't
do
anything
except
it
told
everybody
in
the
federal
government,
all
the
agencies,
with
the
exception,
I,
think
of
the
U.S
Army
and
the
Navy.
Everybody
else
had
to
study
what
digital
assets
were
and
how
they
should
be
managed
and
regulated
in
the
U.S.
A
So
there
was
it's
a
fairly
long
order,
but
that's
the
net
impact
of
it.
There's
also,
which
is
pretty
cool.
Somehow
I've
got
to
find
a
way
to
get
this
hand
out
to
you
see
these
purple
things.
Those
are
all
hyperlinks
that
actually
worked
if
you
had
a
real
handout,
so
I'll
apologize
in
advance
I
have
a
handout
which
somehow
didn't
get
distributed
through
the
conference,
but
we'll
find
a
way
to
get
it
too.
A
If
you
don't
have
it
within
a
week
or
something
then
I'll
say
just
get
me
on
LinkedIn
and
I'll,
give
you
you
know
the
handout
with
the
links,
but
what's
really
cool,
this
group
has
actually
got
a
cbdc
Tracker.
So
if
you
said
I
want
to
know
around
the
world,
where
is
Central
Bank
digital
currency
in
each
country
and
what
projects
are
going
on,
this
group
has
done
a
pretty
good
job
of
keeping
current
on.
A
So
now
we'll
take
a
look
at
some
stuff.
This
is
one
project
I
was
associated
with
at
dtcc.
There's
something
called
the
digital
dollar
project
which,
through
the
credit
of
the
found,
there's
a
digital
dollar
foundation
and
Accenture
who's
here,
as
a
partner
actually
did
a
phenomenal
job.
The
two
of
them
got
together
and
they
said
hey.
If
the
US
is
ever
going
to
do,
Central
Bank,
digital
currency
right,
they
sort
of
need
to
know
how
it
should
work
before
they
try
to
draft
the
legislation
to
do
it.
A
So
with
that
kind
of
motivation,
what
they
did
is
they
created
this
project,
and
this
is
Christian
Carlo
who's.
The
director
of
the
foundation
talking
about
the
digital
dollar
in
a
sense
he's
talking
about
the
value
of
the
digital
dollar,
would
have
for
the
U.S
economy,
which
is
one
aspect
of
it,
but
there's
more
to
it
than
just
that
in
terms
of
what
the
ability,
the
value
it
could
be
to
our
community
as
a
whole
and
same
thing
for
any
country
that
does
a
central
bank
digital
currency.
A
Jen
Lasseter
is
the
executive
director
of
the
digital
dollar
project
and
she
actually
manages
the
operations
and
then
there's
an
Advisory
Group
participants
and
pilot
Partners
to
look
at
actually
what
the
both
the
challenges
and
the
opportunities
of
doing
a
digital
Dollar
in
the
US
are
so
our
company
dtcc
got
together
with
the
digital
dollar
project
and
said:
hey
you
guys
have
a
bank.
You
have
a
use
case
for
in
the
financial
system
for
doing
security
trades.
A
So
since
we
manage
the
security
trades
in
the
US
we'll
partner
with
you
on
a
project
which
we
did
called
project
lithium
to
in
a
sense
look
at
using
a
cbdc
network
to
pay
for
or
security
trades
that
are
settled
on
our
Network,
so
we
already
have
project
ion
which
does,
in
a
sense,
tokenized
security
settlement
of
Trades,
that's
running
in
parallel
today
to
the
current
settlement,
Network
in
production.
So
that's
ion.
A
So
we
said:
okay,
let's
take
ion
that
already
works
and,
let's
imagine
what
a
cbdc
payment
Network
would
look
like
from
the
Federal
Reserve
if
it
were
operational.
So
the
tough
part
of
this
is
there
isn't
such
a
network
because
there
can't
be
one
until
they
legislate
it
right.
So
the
problem,
the
law
doesn't
exist,
but
they
said
let's
go
ahead
and
make
the
investment
to
figure
out.
A
If
there
was
a
network,
make
some
assumptions
assumptions
about
it
understand
how
it
works,
what
the
limitations
are
and
what
the
challenges
are
and
then
from
that
we
can
figure
out
what,
in
a
sense
of
to
in
a
sense,
inform
what
the
Federal
Reserve
should
do
for
that
particular
use
case
when
they
come
up
with
a
network.
So
it
was
a
good
idea
very
challenging
to
figure
out
what
the
FED
might
do
in
the
future,
but
they,
the
project,
collectively
made
some
very
good
assumptions
about
how
that
settlement
might
occur.
A
So
the
key
thing
was
we
wanted
that
the
cbdc
payments
would
be
on
a
Federal
Reserve
Network.
That
would
run
the
cbdc
side.
We
already
have
a
trade
settlement
network
over
here
so
now
we're
using
a
second
Network
for
payments,
so
that
was
the
concept,
and
so
it
would
look
something
like
this
conceptually
right.
So
if
you
say
we
already
have
I'll
quote
the
DTC
Network,
that
does
settlements
and
it
does
more
than
just
custody.
A
It
does
payments
of
all
kinds,
but
over
here
we're
saying
if
the
payment
network
is
going
to
be
the
Federal
Reserve
instead,
how
is
that
going
to
work
you're
going
to
have
two
separate
networks
that
have
to
talk
to
each
other,
and
so,
when
we
looked
at
that,
we
know
in
a
sense
what
our
DLT
platform
is,
but
we
couldn't
assume
the
FED
is
going
to
use
our
platform.
So
we
can't
assume
that
they're
going
to
talk.
You
know
in
a
sense
at
a
blockchain
to
blockchain
level.
A
So
in
effect
we
said:
okay,
we're
going
to
implement
a
blockchain
on
their
side,
one
on
our
side,
but
they
can't.
We
can't
assume
that
they're
going
to
talk
directly
at
the
blockchain
level,
so
we
said
the
lowest
common
denominator
is
just
to
use
apis
to
talk,
which
is
fine
so
for
the
time
being,
until
you
know
different
we're
using
apis
to
communicate,
but
the
idea
being
that
a
seller
has
his
Securities
if
I'm
selling
IBM
stock,
it's
in
my
custody
bank
at
Fidelity
and
the
buyer,
his
custody
Bank
might
be
Vanguard.
A
So
dtcc
has
to
transfer
the
IBM
stock
that
sold
from
Fidelity
over
to
Vanguard,
and
we
already
do
that
at
the
same
time
we're
saying,
but
the
payment
in
a
sense
from
the
buyer
who
bought
the
IBM
stock,
his
payment
Bank
might
be
Citibank
and
his
the
seller,
my
bank,
since
I
sold
the
IBM
stock,
might
be
Bristol
County
or
something
like
that.
So
there's
this
banking
Network
here
the
FED
has
to
run
that
connects
all
this
stuff
for
the
payment
of
cbdc
to
pay
for
the
stock.
A
That
sold
does
that
make
sense
to
everyone
conceptually
it's
pretty
straightforward.
It's
not
a
complicated
problem
in
that
sense
and
like
anything
because
you're
not
doing
a
simple
asset
swap
you've
got
multiple
parties
here,
as
you
can
see
so
there's
four
Banks
involved
two
networks
and
you're
really
doing
two
different
assets.
One
asset
you're
swapping
a
security
is
the
other
asset.
You're
swapping
is
payment,
so
people
say:
oh
Bitcoin,
it's
just
an
unspent
transaction
model
that
solves
everything.
A
Well,
it
doesn't
in
this
case,
because
you've
got
two
different
swaps
that
in
a
sense,
has
to
be
coordinated,
and
so
the
problem
is
I've
got
two
swaps
and
four
Banks,
and
the
question
is
what
if,
in
my
case,
Bristol
County,
a
small
bank,
it's
not
Citibank
or
JP
Morgan.
What
if
they
don't
fulfill
their
side
of
a
swap
right,
you
know,
and
the
other
swap
does
occur.
So
in
a
sense,
how
do
you
in
a
sense
solve
what
I
call
the
problem
of
swapping
assets
and
the
real
issue?
A
Is
you
have
to
have
some
way
of
doing
what
I
call
custody
right?
It's
a
trusted
model
for
that.
That's
the
whole
point.
So
the
idea
being
again
using
the
example
that
you're
going
to
go
through
this
flow
to
in
a
sense,
do
the
you
know
two
different,
two
different
swaps,
so
that
was
dtcc
and
the
idea
of
trying
to
do
a
central
bank,
digital
currency,
so
finishing
that
that
was
just
a
test.
A
So
what
they
did
is
they
came
up
with
two
models
and
they
said
one
model:
they
didn't
even
use
a
standard
blockchain
they
didn't
use
ethereum
or
Fabric
or
anything.
They
said.
No,
no,
we're
going
to
build
something
from
the
ground
up.
That's
super
simple:
it's
not
a
real
production
environment,
but
we're
going
to
build
something
on
level
DB
with
the
idea
that
we
can
compare
what
a
blockchain
model
is
where
you
order
the
blocks.
You
know
transactions
go
into
blocks
that
are
ordered
on
a
network,
and
we
compare
that
to
what.
A
If
you
just
took
a
database
and
said
every
transaction
is
guaranteed,
but
we're
not
going
to
order
them
in
blocks
at
all
and
what
they
found
was
for
the
same
transactions.
They
could
get
a
hundred
and
sixty
thousand
transactions
a
second
in
their
test
network,
but
if
they
only
did
a
two-phase
commit
and
forgot
what
they
call
the
atomizer
that
ordered
them,
they
could
get
1.7
million
or
10
times
faster.
A
Just
by
doing
two
phase
commit
across
a
distributed
Network,
which
was
a
good
finding
to
see
because
it
tells
you
okay,
if
you're
thinking
about
the
cbdc
network.
How
would
you
engineer
it
in
effect
for
performance
and
then
finally,
a
couple
other
areas
of
innovation,
the
there's
a
something
called
the
fednow
network?
A
Earlier
there
was
a
Fed
coin
that
was
an
earlier
project
way
back
in
2017,
the
Boston
Federal
Reserve
created
something
called
the
FED
coin
as
a
test
model
that
didn't
go
anywhere,
but
it
did
set
sort
of
the
foundation
for
some
of
these
other
projects,
but
the
FED
now
Network.
There's
a
new
network
coming
from
the
Federal
Reserve,
that's
supposed
to
be
a
faster
version
of
what
they
call
the
FED
wire
Network.
A
So
major
banks
are
connected
on
the
FED
wire
Network
in
the
U.S
and
it
does
what
they
call
ACH
transfers
from
One
bank
to
another
overnight
kind
of
thing.
The
idea
with
fed
now
is:
it
would
be
a
faster
Network,
more
inclusive,
bringing
more
banks,
credit
unions
and
kind
of
thing,
and
who
knows,
maybe
organizations
could
be
directly
part
of
that
Network
as
well.
A
So
anyway,
the
idea
of
being
the
fednow
network
is
coming
in
place.
It's
supposed
to
arrive
in
2024
in
production,
but
you
know
those
are
always
dates
are
subject
to
change.
The
bigger
thing
is
one
of
the
in
a
sense
board.
Members
of
the
Federal
Reserve
Brainerd
said
that
you
know
the
real
issue
is
they're.
Trying
to
understand
whether
or
not
a
cbdc
payment
would
make
things
a
payment
system
would
make
things
safer,
simpler
or
more
secure
and
what
other
risks
might
it
impose?
You
know
over
the
current
systems
we
already
have.
A
So
all
of
that
is
the
research
they're
working
on
and
they're
trying
to
figure
out,
as
they
say
what
kind
of
guard
rails
do.
They
need
to
establish
what
kind
of
regulations
and
I
will
say
that
digital
dollar
project,
the
Accenture
is
one
of
the
sponsors
on-
is
doing
a
really
good
job
on
trying
to
figure
out
what
that
landscape
is.
A
So
that's
really
where
the
value
point
is
consumer
protection
matters,
everybody's
aware,
I,
believe
of
the
general
data
privacy
regulations
in
the
EU
in
a
sense
passed
several
years
ago.
That
was
a
model
for
everybody
else.
U.S
now
has
some
privacy
laws
in
place
as
well,
but
there's
all
these
areas
of
data
privacy
right,
so
your
data
is
exposed
everywhere,
not
just
on
the
internet,
not
just
to
Google,
but
everywhere
else.
A
Everybody
collects
your
data
when
they
don't
need
all
that
when
I
go
to
a
bar
to
get
a
drink,
I
have
to
show
my
driver's
license.
I'm
sharing
data
I,
don't
need
to
share
all
they
need
to
know
is
that
I
move
legal
drinking
age.
You
know
in
that
state
wherever
it
is
instead
I
wind
up
sharing
more
data,
so
privacy
is
a
big
issue
and
consumer
data
protection,
certainly
in
the
financial
services
world
and
digital
assets
matters
as
much
as
it
does
anywhere
else.
A
So
the
idea
that
gdpr
put
out
is
that
there
are
some
principles
for
what
they
call
data
controllers.
Anybody
that
collects
data
has
access
to
data
or
manages
data
on
your
behalf.
Has
these
responsibilities
that
their
their
principles
on
controlling
the
data
is
the
collection
of
the
data
needs
to
be
lawful,
fair
and
transparent,
so
they
in
a
sense,
attack
companies
that
aren't
following
those
policies
today
there
has
to
be
a
limitation
of
purpose
that
they
can't
just
randomly
collect
data.
A
If
you're
trying
to
figure
out
whether
or
not
I
can
drink
in
your
bar
you're,
not
you're,
not
allowed
to
ask
me,
you
know:
do
you
have
a
job?
How
much
do
you
make
a
year?
Those
would
be
invalid
questions
for
that
purpose.
Data
minimization,
don't
collect
more
data
than
you
need
to
fulfill
the
responsibility.
Obviously
accuracy.
How
long
do
you
hold
the
data
you
know?
A
Do
you
keep
a
copy
of
that
or
not
Integrity
confidentiality
ensure
that
nobody
else,
if
I
show
you
that
I'm
over
18
make
sure
that
nobody
else
can
see
that
and
accountability
if
you've
collected
that
data
you're
responsible
for
it.
So
all
those
principles
makes
sense
for
managing
data
privacy
for
sure
and
in
the
space
of
Central
Bank
digital
currencies.
Those
same
things
you
can
assume
will
apply
as
in
a
sense
principles
for
managing
that.
A
So,
if
I
look
quickly
at
legislation
Trends,
what
I
can
see
is
Europe
again
has
something
called
markets
and
crypto
assets
as
a
regulation
that
has
passed
in
the
EU.
It's
not
enforced
yet,
but
it
has
passed
and
the
European
commission's
Micah
proposal
is
a
framework
to
regulate
I'll,
call
it
crypto
assets
and
the
service
providers
in
the
EU
under
a
single
licensing
regime,
and
that's
actually
pretty
complex
because,
like
the
US
like
the
US,
the
challenge
of
it
is
like
the
US.
A
The
challenge
of
it
is
that
the
states
in
the
U.S
have
jurisdiction,
for
the
most
part
over
Banking
and
insurance,
not
the
federal
government,
except
when
the
federal
government
in
the
U.S
passes
a
law
that
oversees
or
supersedes
that
the
same
thing
applies
in
the
EU.
The
countries
have
responsibility
for
issuing
licenses
and
regulations
around
Financial
systems.
That
may
differ
from
one
country
to
another.
But
if
the
EU
has
set
a
law
that
applies
across
the
EU
EU,
then
it
supersize
supersedes
those
local
regulations.
A
So
the
challenge
of
Micah
is
that,
as
they
say,
they
want
to
give
legal
certainty
for
crypto
assets
that
are
not
covered
under
existing
laws.
Make
sense,
establish
uniform
rules
so
on
but
again
the
the
phrase
is
not
covered
by
existing
law.
So
sometimes
there
is
an
existing
law.
The
nice
part
about
Micah
is
that
it's
not
attempting
to
replace
all
that.
A
Those
are
some
of
the
features
of
mica,
but
that's
what
Mike
is
about
Wyoming
and
the
U.S
I'll
I'll,
give
you
the
slide
deck
to
read
through
that,
but
they
were
a
leader
in
trying
to
say
we're
a
state
we're
going
to
take
over
crypto
assets
as
an
area,
that's
not
governed
and
they
pass
some
laws
back
in
2019
that
were
very
Innovative.
They
looked
at
what
wasn't
covered
and
said,
we'll
take
that
so
Wyoming
managed
digital
assets.
A
The
last
thing
is
the
U.S
executive
order
on
that,
and
that
was
the
attempt
I
mentioned
earlier,
where
in
a
sense
the
federal
government
is
telling
all
of
the
agencies
in
the
government
that
we
want
you
to
go
through
look
at
digital
assets
and
figure
out
how
they
should
be
regulated.
The
most
interesting
part
of
that
law
was
or
part
of
the
executive
order.
Was
it's
like
giving
a
teacher
giving
you
a
homework
assignment
saying
here.
A
I
want
you
to
turn
into
term
paper,
but
by
the
way,
a
term
paper
that
includes
these
facts,
I'm
going
to
give
it
an
A.
So
they
sort
of
told
you
what
the
right
answer
was.
They
basically
said
that
for
digital
assets
that
are
similar
to
traditional
Financial
assets
like
security
stock
derivatives,
whatever
it
is,
they
should
follow
if
they're
in
the
same
business,
the
same
risks
and
the
same
rules,
they
should
follow
the
same
regulations.
A
So
in
a
sense,
even
though
they
were
asked
to
study
these,
the
Departments
already
know
what
a
good
answer
looks
like
if
you're
working
in
one
of
those
departments,
the
Loomis
bill
as
I
said
earlier.
All
that
does
his
map
back
to
the
cftc
record
recommendation
that
says,
take
those
digital
assets
and
make
them
in
a
sense
managed
as
Commodities.
So
that's
really
it
we've
covered
quickly
everything.
So
we,
this
is
a
set
of
takeaways
I.
A
Think
the
biggest
thing
is
the
fact
that,
in
the
U.S
and
in
the
EU
Central
Bank
digital
currencies
look
likely.
They
are
going
to
happen.
How
they're
going
to
get
regulated
is
not
clear.
The
fact
that
they
are
going
to
get
regulated
is
clear
at
some
point.
The
other
thing
is
both
EU
and
U.S
are
working
on
building
the
infrastructure
needed
to
do
that
correctly.
They're
both
doing
studies
in
a
variety
of
different
ways,
to
figure
out
what
makes
sense
for
a
central
bank,
digital
currency
and
digital
assets.
A
What
you
are
seeing
is
there
are
some
things
that
are
saying
certain
things
are
now
in
a
sense
clearer
about,
what's
going
to
get
regulated
for
what
it's
worth,
so
that's
the
end
of
it.
I
want
to
thank
you
all
for
going
through
I'll
call
it
a
long
presentation
on
digital
assets
and
legislation,
but
really
the
legislation
stuff
to
net
it
out
is
really
just
a
risk
model.