Digital Currencies: a Challenge for Luxembourg Financial Sector? Fintech APSI Day – 26 th March by Chris Marcilla Head of Virtual Currencies Working Group
The Tree that hides the Forest Blockchain Sidechain Smart Contracts Blockchain 2.0 Fast Cash-like Secure Transparent Storage Value Private Remittances Authentication 2
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VOLATILITY NO CENTRAL Satoshi Nakamoto, AUTHORITY Founder of Bitcoin 4
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TECHNOLOGY 6
What is Bitcoin? PEER TO PEER NO CENTRAL CONTROL DECENTRALIZED OPEN SOURCE 7
What is Bitcoin? EVERY TRANSACTION IS RECORDED IN A PUBLIC LEDGER: ‘THE BLOCKCHAIN’ 8
How does work a bitcoin transaction? AAA = 5 BTC BBB = 2 BTC JOHN MARY 5 BTC 2 BTC Address AAA Address BBB 9
How does work a bitcoin transaction? MINING COMPETITION VALIDATION 10’ Pushing Transaction REWARD 3 BTC AAA = 5 BTC BBB = 2 BTC JOHN MARY 5 BTC 2 BTC Address AAA Address BBB 10
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How does work a bitcoin transaction? MINING COMPETITION VALIDATION 10’ Pushing Transaction REWARD 3 BTC AAA = 5 BTC BBB = 2 BTC JOHN MARY 5 BTC 2 BTC Address AAA Address BBB 12
How does work a bitcoin transaction? Group Consensus Validation AAA = 2 BTC BBB = 5 BTC JOHN MARY 2 BTC 5 BTC Address AAA Address BBB 13
bitcoin is SCARCE 14
bitcoin is DIVISIBLE 100 cents 100 000 000 Satoshis Minimum Transaction = Less than 1 cent 15
bitcoin is TRANSPORTABLE Small or no Fee Anywhere Real time 16
bitcoin is FUNGIBLE History of every bitcoin is public 17
bitcoin is NOT ANONYMOUS 18
Value Storage Value Transfer Payments Privacy Instantaneous Free 19
Digital Currencies for Banks Today 2-4 days 3-5 seconds CROSS-BORDERS TRANSFERS IN LESS THAN ONE HOUR? 20
Digital Currencies for Funds SMART CONTRACTS SECURITIES CREATION CUSTODY DISTRIBUTION 21
Why 100 k Merchants Accept Bitcoin? HIGH FEES COST SAVINGS FRAUD & CHARGEBACKS RISK ELIMINATION CROSS BORDER INTERCHANGE GLOBAL REACH NEW CUSTOMERS CUSTOMER CAN DISPUTE 22
Hedging bitcoin Volatility OTC REGULATED MARKETS FORWARDS, SWAPS AND FUTURES UP TO 2 YEARS 23
Bitcoin Regulation FEB 2014 : CSSF IS OPEN FOR BUSINESS FEB 2015 : BITLICENSE PUBLISHED MAR 2015 : REGULATION TO COME 24
GAMES OF THRONES 25
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$ 260.0 27 Source: Pantera Capital
Digital Photography in 1995 28
Digital Photography in 1995 29
Services Digitization 10 Billions 10 Billions 41 Billions 10 Billions 30
Who wants to be Uber-ized? 31
THANK YOU. Virtual Currencies Working Group Contact: cmarcilla@accm.lu @chris_marcilla Thanks to: 32
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