The Maltese Falcoin
In this piece, we examine the adoption trends, capital flows and use cases for cryptocurrencies and blockchains. Use cases include crypto as a store of value, cross border remittances, decentralized finance, non-fungible tokens and blockchain adoption in financial services.
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MR. MICHAEL CEMBALEST: Hello, everybody. This is Michael Cembalest with the Eye on the Market podcast for February 2002. For those of you that have been reading the Eye on the Market for a while, you’ll recognize that there’s one topic that I haven’t said a single word about, which is cryptocurrencies and the blockchain. And I’ve been debating whether or not I wanted to dive into this, but I just decided that there was too much going on to continue sidestepping it, even though banks like ours have a lot of restrictions in terms of what kinds of things that we can even execute with customers on this topic. But I thought it was important to take a look, and so I have published a piece called The Maltese Falcoin, which goes into a lot of the crypto and blockchain issues at hand.
So this is not going to be a long podcast. I’m not going to dive into the details here. We look at venture capital flows into the crypto and blockchain space, adoption trends by institutional and high net worth investors of cryptocurrency, and then we get into three or actually five specific use cases, sorry, Bitcoin in the store of value, crypto use in cross-border remittances, crypto used in decentralized finance, non-fungible tokens in the art world, and then a discussion about financial services’ adoption of the blockchain itself in permission to private blockchains.
My take on this is obviously less optimistic than a lot of the people that inhabit the crypto and blockchain world fulltime, as you can tell from the title of the piece. So I circulated it to a number of them for rebuttals, and I include a section here called Rebuttals to this paper, where you can see some of the visions that are a lot bolder than mine in terms of what the future holds with respect to cryptocurrency and blockchain applications. And then I’ve got some conclusions in a really nice picture of Humphrey Bogart. So that’s really all I feel like sharing today. Take a look at the piece, and I hope you enjoy it, and I’ll talk to you next time.
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