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E15 ft. Nic "That Kid" Carter on Balaji's bet and the financial crisis and E16's AI open letter debate
Last week we had Nic Carter on and now we can officially confirm he has never watched the All-In podcast.
Erik’s new show - Upstream with Erik Torenberg - released its second episode on Friday. Erik sat down with Balaji Srinivasan, author of The Network State and co-founder of Counsyl, to talk about his past and future predictions, the future of the left and right, and why tech will never be able to escape politics.
And yesterday we released Ep16 of Moment of Zen: a great debate around the AI open letter featuring the outspoken Anton Troynikov of Chroma, Flo Crivello of Lindy, and Nathan Labenz of Waymark and The Cognitive Revolution podcast. Dan and Antonio will be back next week. Dive into the discussion and decide for yourself: to pause or note to pause?
Today we’ll discuss:
Challenges faced by Crypto Startups
Potential of CBDCs
Impact of AI and Robotics
Challenges Faced by Crypto Startups
The challenges faced by crypto startups in obtaining banking services are not new, but they remain a significant barrier to the growth and adoption of cryptocurrencies. While some crypto-native businesses have managed to find success by building their own financial infrastructure, the majority still rely on traditional banking services to operate. Unfortunately, these services are often difficult to access due to reputation risk and regulatory hurdles.
One of the main reasons that traditional banks are hesitant to provide services to crypto startups is the perception that the crypto industry is associated with illicit activities such as money laundering and terrorist financing. This reputation risk is a significant concern for banks, as they are subject to strict anti-money laundering (AML) and know your customer (KYC) regulations. Failure to comply with these regulations can result in hefty fines and damage to the bank's reputation. As a result, many banks have chosen to steer clear of the crypto industry altogether.
In addition to reputation risk, crypto startups also face regulatory hurdles when trying to access banking services. Regulators have expressed concerns about the systemic risks that cryptocurrencies pose to the financial system, particularly with regards to market volatility and the potential for fraud. This has led to increased regulatory scrutiny of the crypto industry, making it more difficult for startups to comply with regulations and obtain the necessary licenses to operate.
The scarcity of crypto-friendly banks is another significant challenge for crypto startups. While there are a few banks that have embraced cryptocurrencies and are willing to provide services to crypto businesses, they are few and far between. This scarcity means that many crypto startups are left without access to basic banking services such as checking accounts and lines of credit.
Potential of CBDCs
Central Bank Digital Currencies (CBDCs) have been a hot topic in the crypto and finance industries, with many experts speculating on their potential impact on the financial system. CBDCs have the potential to eliminate chargebacks, create competition for payment platforms, and disintermediate commercial banks. However, there are also concerns about central control and surveillance, as well as unintended consequences that could arise from their implementation.
CBDCs aim to provide an alternative to the current financial system and promote financial inclusion. They are digital versions of fiat currencies that are issued and backed by a central bank. Unlike cryptocurrencies such as Bitcoin, CBDCs are centralized and have the same legal tender status as traditional fiat currencies. This means that they are subject to the same regulatory frameworks as traditional currencies, and their value is stable and not subject to the same volatility as cryptocurrencies.
CBDCs have the potential to create competition for payment platforms and disintermediate commercial banks. Payment platforms such as Visa and Mastercard currently dominate the market, and commercial banks act as intermediaries in the payment process. CBDCs could offer a more direct payment system, cutting out intermediaries and reducing costs for consumers and merchants.
However, there are also concerns about central control and surveillance. CBDCs are centralized and are issued and controlled by central banks. This means that they can be subject to government intervention, which could potentially limit financial privacy and lead to surveillance of financial transactions. It is important to carefully consider the potential risks and benefits of CBDCs and to ensure that they are implemented in a way that balances the need for financial privacy and security with the benefits they can offer.
There are concerns about unintended consequences that could arise from the implementation of CBDCs. For example, the widespread adoption of CBDCs could potentially lead to the displacement of commercial banks, which could have significant economic and social consequences. It is important to carefully consider the potential implications of CBDCs and to ensure that they are implemented in a way that promotes financial stability and inclusion.
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Impact of AI and Robotics
AI and robotics have the potential to improve productivity and GDP growth, but there are concerns about job depletion, inflation, and the need for population or productivity growth.
This week on The Cognitive Revolution podcast, Nathan Labenz (@labenz) sat down with the "Mother of Robots" Keerthana Gopalakrishnan (@keerthanpg), and the conversation is an absolute masterclass on all things robotics.
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Until next time.
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