I get the privilege of working with Craig every day on a very simple yet profound mission to make Bitcoin in its original form used by 4 billion people around the world including places like here in Colombia for that to happen we believe Bitcoin needs to work in a regulation friendly government friendly and law friendly ecosystem that’s different than what other people think but we support the version of Bitcoin that you now know is Bitcoin SV we think it’s going to be the all-in-one coin because there are too many crypto currencies out there we don’t want a world of a thousand crypto currencies that’s too many we don’t need that we need one world digital currency and one world blockchain a blockchain is simply a ledger it is a digital way to record transactions and when Craig Reich created Bitcoin he created a global public blockchain to record transactions of Bitcoin and data that’s public that’s auditable meaning people could look at it and verify whether a transaction or data is true and that brings as Craig likes to say light we want Bitcoin to be sunlight to draw light on the world to draw truth not to draw darkness because that’s what’s happening a lot in the past we’ve also explained that bitcoin sv adheres to the original vision of Bitcoin which I like to say is big blocks big business what a lot of people think is Bitcoin under the BTC symbol we call it Bitcoin core that was the original it started that way but the developer groups who took control of Bitcoin core changed Bitcoin they changed it away from the Satoshi vision the Bitcoin Shayne was always supposed to grow big the BTC chain has blocks that are only one megabyte in size that’s small tiny you cannot do world business on a blockchain with one megabyte blocks this nice young woman is taking a picture of me high when she takes that picture do you know how big that file is about one megabyte that means the BTC blockchain every ten minutes on our average it adds a block of transactions a megabyte block means you could only do a few transactions per second on the BTC chain you can’t run a payment system like Visa or MasterCard with blocks that are only one megabyte in size you have to go really big make big blocks 128 megabytes is how big the Bitcoin SV blockchain is because that’s how Craig Wright envisioned it all along it was supposed to get really big to support transactions and business all around the world really fast really cheap it should be very very cheap to send the transaction across the Bitcoin chain and that’s why we fought to keep the original Bitcoin design in Bitcoin sv and we’re planning for really big blocks right now we’re at 128 megabytes in July the network will upgrade to a maximum block size of two gigabytes that’s very techy that’s 2,000 megabytes and in February of next year the block size will become unlimited we believe in a world of a million megabyte size blocks that’s 1 terabyte in computer speak and that would mean you could process billions of transactions a second would it be billions and the Bitcoin blockchain can act as the payment network and the data ledger for the whole to use and that means big business that’s important because we don’t want to see headlines like this we want a lawful environment when it gets that big and people are using this chain all across the world there’s been a lot of problems with cryptocurrency quad Riga is an exchange in Canada the founder died and later it was discovered that he was the only person at the company with access to the private keys for the customers coins so if you were a customer on this exchange the company now can’t access your coins and they’ve lost well over a hundred million dollars Canadian of their customer coins because the founder died and he was the only person who had access to it so now no one else in the company can access your coins that’s wrong we can’t have a world where exchanges operate that way and so it had to enter bankruptcy in Canada and just yesterday the auditing firm assigned to check their records Ernst and Young released a very damaging report that found that the founder of quadriga was using his customers coins to trade himself and to try make money on his own and was faking transactions going back and forth on the exchange to make it look like the exchange was doing more business than it actually did things like this have been happening in the cryptocurrency world and that’s why some people are afraid of it it’s why some governments are afraid of Bitcoin and cryptocurrency yesterday Craig Wright and I had the fortune thanks to Boris to speak before Craig spoke before the Council of Bogota and we spoke with other government officials and we talked to him about the need of creating a lawful environment because we don’t want the to happen to people if you’re going to invest in or use cryptocurrency you want to feel that it’s safe and that’s not what has happened with your prior Bitcoin chains Bitcoin core they have made changes to their code to make it easier to do things with Bitcoin that are considered illegal right you’ve probably heard some people use Bitcoin to buy illegal products drugs to do money laundering and that concerns governments we think that’s wrong not just because it’s illegal but it means that people will not use Bitcoin more around the world remember we want four billion people using it that means big businesses need to use it governments need to use it all of you and every ordinary person should feel comfortable using it and they won’t if we get headlines like this or in the United States this is a recent headline BitFenix is another exchange it’s associated with what’s called a stable coin called tether you’ve probably seen it USD T is the symbol if you buy one tether coin it’s supposed to always be equal to one US dollar so that it doesn’t fluctuate doesn’t go up and down it’s supposed to always be stable one u.s. dollar well it turns out the New York Attorney General in May brought an investigation against BitFenix and tether saying BitFenix covered 850 million u.s. dollars in loss with tether reserves meaning that they printed minted more tether coins magically to pay off or cover 850 million dollars in loss so that if you’re investing in tether or using tether to buy Bitcoin the value is fake it’s not real and it inflates the price of cryptocurrency and Bitcoin if you watch Bitcoin about 1 or 2 years ago you saw this huge price spike it hit almost 20 thousand US dollars really fast do you know why that was it wasn’t because real people were necessarily buying with real dollars people behind these companies and others used fake US dollars tether coins that they magically printed or minted into the universe to drive up the price a Bitcoin and then some people my friends oh my gosh is it oh my god I have to buy bitcoins going way up you know I missed it below and they bought it really high and then the price crashed down and then people felt like they lost value they lost money we don’t want a world where people say I’m creating a tether coin it’s supposed to be worth one US dollar and it’s not because part of the investigation in this case is trying to show that the tether company doesn’t really have assets for every dollar of tether they print they’re supposed to if you say I give you one tether there should be a US dollar worth of assets over here to back in and that’s what the New York Attorney General’s Office is investigating so if we keep having a cryptocurrency universe like this what’s gonna happen my mother would be scared of using that my sister who doesn’t know a lot about cryptocurrency she would be scared of using that and that’s not what we want Craig created Bitcoin to bring light not darkness to the world and this is why we in what we do in my role as president of the Bitcoin Association globally are out talking to governments and businesses about how we create a lawful regulation friendly environment you’ve heard in other speeches today about early Bitcoin people being what are called cyber punks cyber punks they’re the people who first liked Bitcoin because they thought it could help them get around the government get around banks but you’re not going to grow if you try to escape the government there always will be governments and instead of trying to run around governments we should be building a world where Bitcoin works with government systems and that is why we are fighting so hard for this because otherwise people won’t want to use it just this recently this is a person who is an early Bitcoin pioneer and he said that once facebook announced is Libre coin just recently since Facebook is very popular he said okay well everyone now might use the Facebook coin so he said let’s embrace our destiny as the tool of terrorists and criminals for Bitcoin that’s wrong Bitcoin is not having a destiny to be the tool of terrorists and criminals and that is a big difference from what we can with Bitcoin sv and what every other cryptocurrency camp does Bitcoin core Bitcoin cash the coins that want they say they want more privacy they want anonymity they want it so that no one can trace what someone needs sends or uses a cryptocurrency for and if you create a completely anonymous system of money do you know what happens people use it for illegal things they use it for terrorists and criminals is that what we want it’s not what we want and it’s not what craig created Bitcoin for so that’s why bitcoin sv is not only the only blockchain that’s pursuing the original Satoshi vision created by Craig Wright is pursuing a vision to mass scaling huge blocks for huge business for fast transactions all over the world but we are building an environment that is regulation government and business friendly we’re not cyber punks we are the grown-ups in the world of cryptocurrency and that’s what’s needed for all of you and your governments to feel comfortable that we can create a whole ecosystem with law in the middle of it so here are some examples of how we are creating a regulation friendly environment Bitcoin provides you privacy if I send Victoria vert in the front row hi Victoria a Bitcoin transaction my name is not automatically attached to it on the Bitcoin blockchain so there’s an address that people can see that Bitcoin is sent but no one knows whose addresses they are so there’s a privacy element to them but it’s not completely anonymous because you over time can be able to trace addresses to people particularly with the second element if you run a business in Bitcoin you’re probably going to have to comply eventually with what are called kyc and AML rules kyc means know your customer so if you buy Bitcoin on an online exchange the exchange to open an account probably ask you to provide your name to provide an address and to buy certain higher amounts of Bitcoin you may have to provide identification a copy of your identification card or a passport that’s the same thing you have to provide if you open a bank account because the bank wants to know your customer they want to know whose account it is so that you can’t be a criminal opening account to move funds for criminal behavior it makes it harder so they can track you other people in the cryptocurrency world don’t like that they think you should be able to buy and sell Bitcoin without any names attached to it and that’s not what is going to foster a regulation friendly environment cut the laws of most countries will say if you open an account you need to at least get basic identification in addition we believe the Bitcoin world needs to comply with what are called AML rules that’s anti money laundering because we don’t want people to launder money meaning sending money that was the source or the origin is from criminal behavior and try and change it into something else and that’s what banks watch out for if you send a very large amount of money by wire transfer the banks will look at where the money came from who the money is going to and see if there’s anything suspicious about that so the laws of various countries will require an exchange and now in the future wallet operators of certain types to basically get information from you if you’re sending large amounts of cryptocurrency if you said above a certain amount they have to get information that’s good other people in the Bitcoin world don’t like that we think it’s good because it will reduce the possibility of people using Bitcoin for crimes and allow it to grow into more business and government friendly ecosystem in addition you’ve probably heard about tokens tokens sound complicated but are a very simple concept it means you represent one asset digitally on the blockchain so for example if you own a car your car probably has an identification number in the US we call it a vehicle identification number you could create a digital token it’s just a little digital file which includes the identification number for your car you can record that on the blockchain and if you ever sell your car you can do a transaction that records I sold my car to someone else and the ownership of that ID number moves to the person who bought it it’s a way to track goods as well as other things on the blockchain so you’ve heard about a lot of tokens encrypted currency because people have been doing these things called initial coin offerings icos where they say I’m gonna start a company and I’m gonna make a new coin let’s say I wanted to start a company today and whatever I’m gonna sell Columbian coffee and I’m going to raise money I don’t have money to start the company I’m gonna start Columbia coffee coin and then they offer the coin to the public they sell lots of coins but the owner kept a number of coins for himself like let’s say he kept a million coins and he offered 10 million coins to the public people buy it the price goes up the owner sometimes in these suitcases sells his million coins that he kept for free for himself makes a lot of money and then doesn’t do anything there’s no business but if you bought the Columbia coffee coin now let’s say you bought the Columbia coffee coin and you’re waiting to see if it goes up but the owner doesn’t do anything so it’s committing a fraud on the public to try and get them because everyone’s kind of excited about cryptocurrency they’re looking for the next coin to invest in we see this a lot and it leaves the buyers with something that’s not worth anything anymore in the traditional investment world that would be a problem because if you have to raise money for investment in a company you owe the investors certain things you give them rights you have to provide information about your business plan and if they invest in your company and it turns out it was fake you’ve broken the law because you’ve defrauded an investor that’s what has been happening over the past few years with all these icos that’s why there’s so many coins have you ever wondered why are there so many cryptocurrencies because a lot of people are creating just new coins they’re tokens and saying he’ll let me sell them I’ll try to make money for myself really quickly and not do anything and then people are left with touken that has no value I think that’s wrong and securities regulation agencies around the world also think it’s wrong and they’re starting to take action and try and start cases legal cases civil and criminal against people who create such tokens we believe that you can create tokens on the blockchain but not just to create a fake coin to make money for yourself but to trade something real so for example if you own stock in a public company will take facebook as an example it’s a public company you could buy stock in Facebook you could create a token that represents that share of stock it’s a real asset right it’s worth something in the real world you can make a token that represents us on the Bitcoin sv blockchain and then trade it and that’s okay and there’s laws that govern that and people if they do that should follow the law you can create tokens for a bond you can great tokens for event tickets airplane tickets bus tickets anything with real-world value we support creating tokens on cryptocurrency exchanges as I mentioned there have been some headlines recently where cryptocurrency exchanges are doing bad things they’re not protecting the rights of their customers compare this to a stock exchange if you’ve ever bought stock of a public company you probably have an exchange account on a stock exchange that stock exchange has certain obligations to you it can’t run away with your money it has to give you the stock that you buy it has to inform you of your rights as a shareholder when let’s say there’s a shareholder vote and that’s all governed by laws to protect you the consumer the stockholder we think similar laws should apply to cryptocurrency exchanges but because the cryptocurrency world is new it’s been unclear in a lot of countries what rules and laws apply to those exchanges and that’s why some of these exchanges have been doing bad things so to give you an example of quadriga the Canadian company I talked about if you run an exchange let’s say you’re a customer little use Victoria’s an example again she sends money to the exchange to say I want to use that to buy cryptocurrency and all the customers let’s say all of you in this room send the exchange money the exchange should keep all your money separated from its money as the company that it uses let’s say to pay its employees or to pay its office lease and under the laws of many countries if you run businesses like that you’re required to separate your money from the company from those of your customer because think what happens if those get put together if the customer wants to take out their money what if the company has spent it all right what if you want to liquidate your coins and you want Colombian pesos back but if the company has already spent all the money it can’t give you your money back that’s a problem and that’s why we believe in a more regulation friendly world to stop things like that finally stable coins are a really important example to talk about I mentioned the example of tether that’s supposed to be one tether for one US dollar and in the ideal world the company that makes tether should let’s say they print a million tether they should have in the bank a million US dollars so that if you buy a tether it’s actually worth one dollar but sometimes these companies lie they don’t really have the million dollars in the bank they’ve made a million tether but maybe they only have six hundred thousand in the bank so that if everyone came back with their tether and said I wanted all our back the company can’t give it that’s a problem and that’s the kind of thing good regulations should be able to stop so what are we gonna do about this we support a different world a new world of exchanges instead of exchanges trading a thousand cryptocurrencies that don’t really have any real value we want to see exchanges where they sell coins that actually means something of real value a new one based out of Hong Kong is called float SB it’s built just for Bitcoin sv which we support and their founder said I only want to trade things here that have real value I don’t want to trade fake coins so only send me coins which represent some real-world asset that is a good thing for the future a company in London bit stocks is building gravity it is a banking application that provides a full array of banking services on Bitcoin sv on your mobile phone so that all the things you do with the bank you could do with the mobile phone using Bitcoin and it’s going to get a regulatory license and behave and the compliance with law that’s a good thing because if you want people to treat Bitcoin like banking services you want it to be serious like you’d expect from your bank you don’t want your bank to run away with your money you want your bank to give you certain rights and that’s what’s going to happen with this tokenized is a project and system from a team based out of Australia that is release the ability to create many kinds of tokens on the Bitcoin SV blockchain they can support about 50 different types of assets for tokens as I mentioned before stock shares of companies bonds things that have usefulness such as airplane bus training concert tickets any kind of real-world asset with real value they can turn into a token and then you can trade it in the Bitcoin SV ecosystem this is just coming out it’s really exciting and it’s going to make what happens on Bitcoin sv much more real in value it’s also built for legal compliance that company want a five million British pound contest that our partners at coin get grant to find the best token solution and our team a10 chain help select them as the winner and one of the reasons we selected them was it not just because they were good technology they created a system that made it very easy for a business to comply with laws to if they issued a token so let’s say I’m running a business here in Columbia and I’ll use the coffee example again I sell Columbian coffee and I want to create a token that represents shares or some interests in my crops of coffee beans and I want to issue a token and I can sell it to the world but then I may have to comply with certain laws that might govern securities like stock it’s a different form of security well this system makes it very easy for the business when they issue the token to comply with the local laws that govern money securities and contract laws and many other things that’s a really good thing because it means more businesses will feel comfortable using it think about it if you run a business do you want to issue a token which might be illegal no you want to build a a token which will comply with laws in which the government will treat as friendly and that is good for helping things grow the final area I want to cover with you is about not being afraid of laws if you work in the cryptocurrency world a lot of people sometimes say oh I don’t like law because cryptocurrency people they’re kind of you know outside of the normal they’re cyber punks they don’t like laws I used to be a lawyer actually for 21 years so maybe that’s why I like law so I practice law in the United States and not all laws are good but laws can be used to help grow business and I’m going to give you some example of how legislation including here in Colombia and this is where you can talk to your local legislators and your national ones to encourage law that helps Bitcoin grow here one there’s something called sandbox programs that come countries around the world use and that means if you’re an entrepreneur here you’re thinking I want to start a new tech company with Bitcoin here and I’m not sure whether I have to comply with certain laws and regulations some countries will create a program where it’s called the sandbox because kids like to play in a sandbox when they’re little right and it creates a little environment for new tech startups to try to experiment without having to worry about regulation or it makes it easier for them to deal with so a number of countries have sandbox programs which say if you want to start some kind of cryptocurrency Bitcoin business you can qualify for this program and you will have you won’t have to comply with all the laws so we’ll make it easier to give you the room to experiment for a while so that’s one thing this country could do as well to encourage more tech startups in Bitcoin in addition a lot of countries are enacting what are called digital asset or virtual currency business legislation you don’t want to read the whole thing it’s long it gets kind of boring but Craig Wright and I have been spending a lot of time over the last year especially because Craig is actually studying forget another degree he has 17 or so degrees and now he’s getting two more PhDs including one in law and so we spent a lot of time reading laws around the world as countries think about enacting new laws that govern businesses in cryptocurrency and digital assets to try to protect consumers so we have reviewed for example a legislation for the island of Antigua which is trying to be very proactive with cryptocurrency and it’s defining the different classes of services as you can see here a businesses that are operating and so if you operate as an exchange what’s called the custodial wallet service and others the laws will you you have to get a license from the government and then you have to comply with certain requirements that’s designed to make it safer for consumers to interact with you so that that example of quadriga in Canada can’t happen for example if you run a crypto currency exchange you should be required to make sure that the private keys to access the customer coins are safe but it kept it more than one place so that if someone dies or disappears the coins are not locked up and lost forever think about that how can you ever have a big cryptocurrency business where only one person has the keys what if they’re in an accident what if they disappear what if they want to run away with all the coins or in the case of quadriga what if they die that can’t happen and that’s why laws like this will make it safer for cryptocurrency to operate another thing countries can do is take a look at whether or not they want to recognize legal status for virtual currency in the country so for example in 2017 Japan became the first country in the world to recognize Bitcoin as a legal form of payment in the country and the people in Japan if you’ve been up in there are super crazy about Bitcoin they love Bitcoin and that was a very good thing because after that happened the number of stores merchants in the country that accepted Bitcoin went way way up because the government said it’s a legal form of payment that can be accepted so one way in which law can help encourage the growth of Bitcoin in Colombia other South American countries is if governments look at it and say ok I’m going to recognize it as a form of payment method or perhaps was even called legal tender another important thing if you’re ever thinking about running a cryptocurrency business is bank accounts one of the challenges is that Bay are afraid of cryptocurrency a lot of banks don’t like it first in the beginning because they thought cryptocurrency and Bitcoin threatened them right and so they were a little afraid of it and now they’re afraid of it because they can’t track if you’re depositing money into the bank if it came from cryptocurrency who it came from that’s why you need those know your customer kyc requirements and so we invest in and support Bitcoin startups all around the world and our own businesses use Bitcoin we mined Bitcoin and we use that to pay for expenses to pay for our lawyers or accountants and other people but we also need bank accounts to convert our Bitcoin to British pounds where one of our business operates so we might convert them to euro well a lot of banks don’t like to give bank accounts to cryptocurrency businesses so how do we help that how we saw that because if you want to start a cryptocurrency business you still probably need a bank account for example here in Colombia to convert to Colombian pesos so you can pay your employees well Wyoming in the United States of all places you’re very Western you know lots of grass and hills State they’ve been trying to encourage more crypto businesses to come to their state so they passed a law which said starting next year there will be a new classification of bank in Wyoming that is authorized to provide banking to blocking businesses so they’re saying very proactively if you are a certain kind of bank you can provide banking to a blockchain business that’s a great thing and if more states more countries did that it would be easier to start cryptocurrency businesses because it provides certain protections and it’s a way for a state or a country to say we encourage you to come here to build your business Wyoming is doing that because I’ll be honest not many people live in Wyoming right now and it’s a way to attract more businesses to be formed in their state and earn more tax dollars for their state from the business it’s a very smart move of theirs right to say come here to build your Bitcoin blockchain of cryptocurrency businesses so those are some examples of how I see Bitcoin in the form of Bitcoin SV Satoshi Vision building a regulation and government and business friendly environment requiring things such as kyc and an time under a money laundering law compliance many people in the cryptocurrency world don’t like that we think that’s a good thing we don’t want a world of all these coins like Manero or – or others who are trying to create what they say is more privacy but we say is creating anonymity people are some of the other Bitcoin camps such as Bitcoin cash are trying to create applications that allow you to more easily get around certain legal requirements that’s not a good thing long term we want a Bitcoin world that brings light Bitcoin is sunlight it’s not darkness it’s a blockchain a public record keeping system which anyone should be able to look at and while your name may not be attached to it the history of transactions the history of records is something that is meant to provide more truth to the world and that’s the final thought I believe you on Bitcoin is about truth it’s about providing more truth to the world and it’s providing all of the users of it people in this room like you we hope one day four billion people around the world more financial power over their own lives more financial services and the truth of a Bitcoin currency and blockchain that brings sunlight to the world [Applause] [Music]