10:08:06 From Roderick Schwarz : Will you please put the slides in presentation mode? Thanks 10:11:48 From Sage_Tega : is the slide available for download 10:37:01 From Luther Maday : will the deck be shared? 10:37:33 From HeatherLowe (she/her) : At the beginning, he said the deck would be shared. 10:37:37 From Sage_Tega : I also asked, maybe when he is done with presenting we'll it 10:37:44 From John Zuccaro : I was wondering the same. This is an awesome presentation! Thank you, Jim. Very insightful. Lots to dig deeper into. //============================= Project Hamilton at Boston Fed/MIT //============================= 10:38:09 From Jerry Kickenson (he/him/his) : What about Project Hamilton at Boston Fed/MIT? Jim >> the Federal Reserve has been testing the concept of a CBDC since 2017. One of the better projects is Project Hamilton done in collaboration with MIT. https://www.bostonfed.org/news-and-events/press-releases/2022/frbb-and-mit-open-cbdc-phase-one.aspx The project compares the design concepts of using ordered atomic transactions on a blockchain ( like Bitcoin ) to a simple atomic transaction using just 2 phase commit on LevelDb. In addition they looked at a basic failover scenario for failure. The blockchain tested was one they created custom using LevelDb. The results showed potential gains of using a simple LevelDb strategy vs a blockchain. There are MANY concepts to scale blockchain beyond the basic ones considered by the Ethereum community once you move away from the current blockchains and focus on the goals of automated trust for transactions. The MIT details on the project are very good. MIT and the Fed have open-sourced the project here. https://github.com/mit-dci/opencbdc-tx/blob/trunk/docs/architecture.md //============================= privacy legislation in states //============================= 10:40:18 From HeatherLowe (she/her) : Other states that have adopted privacy legislation that comes into force 2023 or later: VA, CO, CT, UT Jim >> Many states have passed legislation on privacy for different contexts: healthcare, sales solicitations, retail sales, online data etc. Here's a quick query that lists many of the bills that have been passed by different states for review: https://legiscan.com/gaits/search?state=ALL&keyword=summary%3A+privacy //============================= VT legal structure around digital assets //============================= 10:48:32 From HeatherLowe (she/her) : Jim - would be interested in hearing your thoughts on the VT legal structure around digital assets as well. Jim >> https://www.coindesk.com/markets/2018/05/31/vermont-governor-signs-bill-clearing-way-for-blockchain-companies/ https://legislature.vermont.gov/statutes/section/11/025/04171 Subchapter 012 : Blockchain-based Limited Liability Companies (Cite as: 11 V.S.A. § 4171) only 2 comments on the blockchain LLC law 1> ANY person with control of a single token on the blockchain network is considered a "participant" in the LLC and may have associated liability with the company ( high risk ) (B) each person in control of any digital asset native to the blockchain technology 2> the law defines nothing about the custody responsibilities, liabilities or assurances specifically - just indirectly implied - not good Vermont Law on Digital Assets disclosure: https://legislature.vermont.gov/statutes/section/14/125/03556 the law allows a fair amount of lattitude for ANY custodian ( eg a bank etc ). I would think that level of control over release of private data on assets would be given to a trustee or executor, not necessarily any legal custodian of assets. //============================= risk on stable coins //============================= 10:49:40 From Jerry Kickenson (he/him/his) : Is there a risk in any jurisdictions that stable coins will be legilsated or regulated out of existence, in the name of governments controlling money supply? Jim >> states are not allowed by law to control the money supply directly. they could pass laws on making access difficult or easy. generally stable coins have not been defined as a currency in the US now. they are considered crypto. The Federal order to decide on stable coins as part of the overall plan for Digital Assets will probably have an impact 10:50:18 From John Zuccaro : Great question, Jerry. 10:50:22 From Sage_Tega : what's the difference between a CBDC and stable coins a stable coin is a cryptocurrency that is specifically pegged to one or more fiat currencies or a commodity to stabilize it's value. they provide a valuable service in crypto trading. better stable coins have audits showing they are backed by an actual currency or commodity. Algorithmic stable coins are very high risk and not worth investing in. if you trade bitcoin for ether, they are both highly volatile so a seller stands a high risk of loss or gain in value. the ether purchased has similar risk to the bitcoin so it can't provide stable value in most cases. swapping bitcoin for a good stable coin does give you a stable value store based on the stable coin's backing. //============================= cbdc compared to stable coins //============================= 10:51:24 From Sage_Tega : If CBDC are generally accepted what will be the outcome of stable coins that are backed by some foreign reserves 10:51:59 From Luther Maday : cbds - central bank digital currency...so issued by central banks... stablecoins are digital currencies pegged to a fiat currency...or gold or some real asset 10:52:20 From John Zuccaro : CBDC is controlled by a central bank. Stablecoins are either controlled by a centralized company that backs the stablecoins with various assets (securities, bonds, gold, etc.) or an open-source algorithm 10:52:20 From Luther Maday : *cbdc 10:52:38 From Sage_Tega : Noted 10:54:43 From John Zuccaro : Both algorithmic stablecoins and centrally controlled stablecoins come with different risks 10:56:05 From Luther Maday : to add to John's comment ..Terra was an algorithmic stable coin...USDC is a stable coin backed by actual dollars...GCOIN is backed by gold 10:56:07 From Benjamin Weymouth : My thoughts on that! :) CDBC risk is still unknown since most CDBC's are in the prototype / emerging stage. That said StableCoin's (think Luna) have proven to be higher risk. //============================= 10:56:43 From Nupur : where can we get the slides? 10:56:59 From dennis : just wanted to thank you for doing this - very informative //============================= change on De-Risking percentanges with digital assets? //============================= 10:57:05 From Roderick Schwarz : Do you see a change on De-Risking percentanges with digital assets? Jim >> I don't see digital assets changing on risk until stronger regulations and governance are in place. Much like the risks in the existing securities industry have been lowered over time with better regulation, reporting requirements, audits and controls from governments, regulatory bodies ( eg FINRA etc ) and the support of companies in the financial industry, digital asset regulation, governance and practices will need to change significantly. //============================= 10:57:10 From Jim Mason : slides will be here 10:57:12 From Jim Mason : https://wiki.hyperledger.org/display/PSSIG/Public+Sector+SIG //============================= algorithmic stablecoins //============================= 10:57:16 From John Zuccaro : Yeah so far algorithmic stablecoins are still highly experimental. DAI has proven to work well in volatile markets though Jim >> I see algorithmic stable coins have higher risks than those backed by stable currencies like the US dollar //============================= CBDC interoperability? //============================= 10:58:20 From Luther Maday : Jim, can you talk about CBDC interoperability? 10:58:30 From Benjamin Weymouth : @JimMason thanks for the Slide URL!! Great presentation today. -Benjamin 10:58:31 From Paul Roest : What are your thoughts on Project Hamilton? 10:58:37 From Luther Maday : for cross border 10:58:41 From Jerry Kickenson (he/him/his) : Is there any discussion regarding stress tests for stable coins, or digitial assets in general? 10:58:52 From Sage_Tega : Are there specific restrictions when dealing with CBDC, can it be interoperable with current cryptocurrency Jim >> There are a few CBDC in production today in smaller countries. The CBDC tracker is a good place to start to find them https://www.atlanticcouncil.org/cbdctracker/ I don't expect all CBDCs to be on the same blockchain. Hyperledger Cactus is an open-source, pluggable enterprise-grade framework for transacting multiple blockchains. I expect CBDC networks will also provide a set of secure API services that provide an easier integration point for many use cases. Beyond basic service connectivity, each CBDC will be a unique sovereign currency. If your use case needs British pounds and you have US dollars, you will need to sell dollars to buy pounds through an exchange. I expect CBDC networks to integrate banks and maybe other financial service firms in some cases. I assume that retail direct access may not be an initial focus for most networks. I clearly may be wrong on that assumption. //============================= 10:59:19 From Roderick Schwarz : Thanks 10:59:36 From Meeting Analytics from Read : Meeting Analytics from Read has been added to the meeting by Bhaskar and Bhaskar. With a timer, talk time, and meeting metrics, Read helps facilitate a better meeting in real-time. A transcript of this meeting will be generated. Raw meeting audio and video data is automatically deleted within 24 hours with no playback functionality. Review our Terms of Service at https://read.ai/tos and Privacy Policy at https://read.ai/pp. Disable features by typing in chat: “timer off”, “talk time off”, “meeting score off”, or “display off”. To opt-out of measurement, type “opt out” and Read will leave the meeting. Install for Zoom: https://api.read.ai/zoomapp/install View Read Metrics: https://app.read.ai/dash/01GA991T25NNZ9Y5ZDPKQMVAS2?src=chat. //============================= Djed is an algorithmic stablecoin protocol //============================= 11:00:57 From John Zuccaro : Djed is an algorithmic stablecoin protocol that is also experimental, but it is formally verified through "bounded model checking" and "interactive theorem proving" … here's the peer-reviewed paper to learn more: https://iohk.io/en/research/library/papers/djed-a-formally-verified-crypto-backed-pegged-algorithmic-stablecoin/ 11:01:30 From Sage_Tega : thanks 11:01:32 From Roderick Schwarz : Thank you 11:01:33 From Benjamin Weymouth : Have a great day all! Thanks @Jim! 11:01:36 From Paul Roest : thank you 11:01:36 From Erika S. : Thank you! 11:01:42 From Paul Quigley To Jim Mason(privately) : Excellent presentation! Thank you for the comments about WY. We worked hard on creating these 11:01:42 From Sage_Tega : really great lecture 11:01:47 From Gunjan Syal - GoEmerald : thank you!