Hey, yo what is going on with the viewers
of the tuuuuubbbe!?
If you were notified of this video, you know
who I am, if you weren’t notified why not?
Ring that bell, because my name is Tyler and
you just entered the crypto channel, that
keeps it as hospitable than these good ole
Montana folk….You know how we GIFT it.
It’s time for Chico Crypto!
A gift?
Yes, that is what Chico Crypto is bringing
to you served sanitized, stanky, and straight
up lanky.
We haven’t done a good ole, research video
for some time, since the craziness of the
world took over but the breadcrumbs have been
being dropped day by day, and these crumbs
actually connect back to the craziness of
the world and economic turmoil.
What I’m talking about is the Digital Dollar,
and how blockchain projects are most likely
connected right back to the USD’s next transformation.
So March 20th, I made my first video, about
the Digital Dollar when the treasury department
announced the hiring of Brian Brooks, Coinbase’s
Chief Legal Officer, who was highly involved
in the legal red tape of getting USDC the
ok from the mix of US regulators.
And this was before the stimulus bill was
announced, by March 23rd….there were draft
Stimulus Bills, with digital dollar language
in them.
So, on March 25th I put out my second video,
with even more research, finding out Brian
Brooks, is best freinds with Steve Mnuchin
snoochie boochies... and Brian is gung ho
on the private sector building the technology
for the next US Dollar, while the regulators
and government should just set the monetary
policy.
That is from Brian's own mouth, and if you
want my full research, both digital dollar
vids are included down in the description.
So there are many layers of this onion to
peel back….of course there's the Federal
Reserve including the treasury department,
but there is also the layer of the clearing
house, and finally something called ISO20022.
What is ISO20022?
Well it’s the new global standard for payment
messaging, that really isn’t new, it was
created and first published all the way back
in 2004 by the international organization
for standardization, ya that group, that makes
sure things are ISO certified, in industries
across the globe.
So, in 2012, the FED created a stakeholder
group whose goal was to assess the value of
adopting the new ISO standard.
This lead to the publishing of a paper in
2015, titled Strategies for improving the
US payment system.
And in it, with stakeholders including the
clearing house, they assessed ISO20022 in
a business case, and from the recommendations.
The study concluded that a phased approach
to ISO 20022 adoption should be employed in
the United States to reduce risk and cost.
Which included 3 phases, phase 1: education….phase
2: adoption for cross border payments and
finally phase 3: for domestic payments.
Well 3 years went by since that paper, and
in July of 2018 when the New York FED board
of governors released the statement that they
were looking to adopt the ISO20022 message
format for the Fedwire Funds service as it
would be an international standard that would
replace Fedwires current payment messaging
format.
And as we can see, the transition to ISO would
take place in 3 phases with the FED, beginning
in 2020 and ending in 2023.
Now here is where things start to really accelerate.
November of 2019, Jerome Powell, head of Federal
Reserve sent this letter to Congress, and
it said that they were exploring whether it
makes sense to issue its own digital currency
that could be used by households and businesses...a
central bank digital currency, or CBDC.
In the letter Jerome Says “the Federal Reserve
is not currently developing a US dollar CBDC.
but continues to carefully evaluate the costs
and benefits of issuing a general purpose
CBDC, defined as a new type of Fed liability
that could be held directly by households
and business”
So no actual work in November, but like I
said, things accelerate fast.
February 5th of 2020, Fed Governor, Lael Brainard
gave a speech at the Stanford Graduate School
of Business in California.
No recording, but the FED has a transcript
of the speech.
In it she talks about Digital players in the
payment space, from technology firms, and
increased competition...thus the FED needs
Real-time infrastructure
Lael says “. We are committed to closing
the gap between the transaction capabilities
in the digital economy and the underlying
payment and settlement capabilities.
Recognizing that consumers and businesses
across the country want and expect real-time
payments, and the banks they trust should
be able to provide this service securely,
this summer, the Federal Reserve announced
that it is building its first new payments
rail in more than forty years—the FedNow
Service.
FedNow will facilitate end-to-end faster payment
services, increase competition, and ensure
equitable and ubiquitous access to banks of
all sizes nationwide.
Together, the Clearing House's RTP and FedNow
are moving the U.S. banking system to real-time
retail payments.
These systems will enable consumers and businesses
to settle retail transactions in real time,
at any time, and allow them to manage their
money with greater flexibility.
RTP and FedNow should significantly increase
the speed and efficiency of the U.S. payment
system.”
She then goes on to talk about Central Bank
Digital Currencies, how private banks, and
other countries like china, are rapidly moving
with plans for a digital currency.
She explains “Given the dollar's important
role, it is essential that we remain on the
frontier of research and policy development
regarding CBDC.
Like other central banks, we are conducting
research and experimentation related to distributed
ledger technologies and their potential use
case for digital currencies, including the
potential for a CBDC.
We are collaborating with other central banks
as we advance our understanding of central
bank digital currencies.
So the way money is going to move, is going
to rapidly change.
FEDnow and Clearinghous’s RTP, are in the
works…..and there is potential for a US
central bank digital currency to move through
these systems.
Well, as we know, just a month later, in March
we had Brian Brooks brought onto the Treasury
department Team specifically to the office
of comptroller, reuniting with his old friends
from Onewest bank.
And we know, what Brian thinks, private companies
should build the tech, while government sets
monetary policy.
What private payment organization does the
Federal government and regulators loooooveeeee?
SWIFT, or the society for worldwide interbank
financial telecommunication.
And you know Swift, they are the transfer
powerhouse...according to the treasury, they
handle 5 trillion dollars….per day.
And what has SWIFT recently said?
Well just last month, they announced their
new approach to ISO 20022 adoption, which,
gives banks a little leeway to full adopt,
pushing out requirements for banks from 2021
to 2022 but still sticking to their original
roadmap, of a complete overhaul by 2025.
So now we know, the FED is getting an overhaul,
FEDwire, the Clearinghouse is getting an overhaul
through RTP, and their favorite private system
is getting redone.
So what blockchain projects are involved with
this?
Well from my previous digital dollar videos,
we zeroed in on Coinbase and their USDC.
It’s built,and Brian Brooks was a big part
of it.
It’s something that the Federal Reserve
likes, a coin backed by their greenbacks.
So this is definitely suspect numero uno!
And as we know, USDC, is an erc20 asset built
on Ethereum, so that is big news for the Ether
crowd if so.
But in my personal opinion, the stablecoin,
isn’t what we should be worried about, as
I foresee many private organizations, attempting
to create their own version.
As just 3 days ago, another company Netcents,
declared their readiness for the expected
Federal Reserve Digital Dollar.
Competition will be fierce, and there will
be many stable options.
But how those stablecoins are transferred,
is a much different story.
So this goes back to Swift, the FEDs favorite
private transfer system.
Well Swift is conforming to the ISO20022 standard
through SWIFT GPI, which they say will digitally
transform cross border payments.
Well in January of 2019, swift announced swift
GPI link, a gateway that would enable GPI
to ecommerce and DLT platforms.
And the proof of concept would launch with
the firm r3.
Well almost a year ago, in March of 2019 we
got a very informative webinar between SWIFT
and r3, that requires email registration to
gain access too, well let’s do it, and skip
to 13:27 and begin..
Yes, Swift GPI link is an oracle service.
It’s an ORACLE that is system agnostic because
they plan on working with a multitude of services
blockchain/DLT and the new traditional ones
like FedWire.
And it’s sooo freaking easy to see, just
going to smart contract.com, of which is chainlink,
you see their first partner.
“We're proud to be working with SWIFT on
their own SWIFT Smart Oracle.
Allowing smart contracts on various networks
to make payments, send governance instructions,
and release collateral with over 11,000 banks”
Which Sergey, the flanman himself, has clearly
explained…..but that was back in the day
during the proof of concept phase, well just
6 months ago back in September, at a chain
link meetup in Paris, something went quietly
under the radar.
Lets watch now...ya the “chainlink SWIFT
oracle”
So from my research, we should be keeping
a keen eye on a couple of projects, USDC.
I mean, just look at the explosion in supply,
once news of the digital dollar started circulating,
a growth of 62 freaking percent in just a
month, and USDC supply is at about 700 million.
Something is bubbling regarding this stablecoin….But
how this stablecoin, or others, or any asset
for that matter, will be going through Swift
GPI in the short term future, and the GPI
link reaks of chain.
Cheers, I’ll see you next time!
