Cryptocurrency - What it Means for Companies and Associations involved in International Commerce - October 22, 2019

1. 2019 LUXEMBOURG AMERICAN CHAMBER OF
COMMERCE
ED SCHIPUL, TENDENCI
CRYPTOCURRENCY - WHAT IT MEANS
FOR COMPANIES AND ASSOCIATIONS
INVOLVED IN INTERNATIONAL
COMMERCE
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

2. “IT IS NO COINCIDENCE THAT THE CENTURY OF TOTAL
WAR COINCIDED WITH THE CENTURY OF CENTRAL
BANKING.”
― RON PAUL, “END THE FED”
You have to finance wars
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

3. IT’S ALL ABOUT CONTROL
CENTRAL BANK VS CRYPTOCURRENCY
• Central Bank
• a national bank (or monetary
union)
• financial & banking services to
Gov
• runs commercial banking system
• enforces monetary policy
• issues currency, physical and
CBDC (CB Digital Currency)
• clearing agent
• lender of last resort
• Bitcoin cryptocurrency - 2008
• decentralized digital currency
• can be sent from user to user
on the peer-to-peer bitcoin
network
• no central bank
• no single administrator
• no need for intermediaries
• no enforcement of monetary
policies
https://en.wikipedia.org/wiki/Central_bank
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

4. (OBLIGATORY VENN DIAGRAM)
CENTRAL BANKS VS CRYPTOCURRENCY
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

5. WHAT IS CRYPTOCURRENCY IN PLAIN ENGLISH?
A. Crypto (unique)
B. Blockchain (quantum ledger)
C. Smart Contracts
A. Scarce object (camera, diamonds, etc…)
B. Clipboard to check things in/out (some have more paper)
C. Agreements (return it by Friday)
Think of it like borrowing from a friend and returning it. Keep it simple.
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

6. WHO MAKES (“MINTS”) CRYPTO?
• It varies (sorry)
• Regular people can “mine” PoW
• BTC (Bitcoin) comes from China
• Ethereum is from Russia/Canada
• Hackers love crypto. So do money launderers.
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

7. IS CRYPTO “MADE” OR “ISSUED”
• “Proof of Work” (PoW) Lots of compute + energy
• Analogy: a human calculating the next digit of pi
• “Proof of Stake” (PoS) Given out by the chosen few (like
the Fed)
• Analogy: Mom and Dad decide the amount of your allowance based on
some arbitrary methodology. Just like the Fed.
IMPORTANT: DO NOT PASS GO. READ THIS SLIDE AGAIN
PLEASE.
HINT: IT’S BOTH!
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

8. IS IT REALLY ANONYMOUS?
• It depends….
• PoW is mostly Anonymous
• PoS is not (typically) but may be effectively anonymous over time from a
jurisdiction standpoint.
• PoS and PoW BOTH bring the world of international banking to the people.
• Middlemen who provide no real value will be disrupted
• Big Take Away:
• You’d rather be “managing money” than “processing transactions”
IF YOU DON’T RECALL “POW” AND “POS” GO BACK 1 SLIDE
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

9. TETHERCOIN?
• Tethercoins are a “Proof of Stake” variation tied to a
currency or a “bucket” of currencies
• “Stable Coin” is similar to a tether coin with algo
stabilization
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

10. IS IT ACTUAL CURRENCY?
• Not really. More like an “Asset.”
• Binance is the Largest Exchange, HK to Malta
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

11. SECURITY OR COMMODITY?
• A commodity can become a security and vice versa -
Heath Tarbert, CFTC Chairman, Oct 22, 2019
OK, got it. Maybe. Huh? Lots of clarity on that one…
Source: https://finance.yahoo.com/news/cftc-chairman-commodity-become-security-205207896.html
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

12. BENEFITS/THREATS FOR NORMAL PEOPLE
• no fees that are legacy and don’t create real value (Schwab now has
free trades.)
• Anonymous (somewhat at least)
• Govt doesn’t know what’s really going on and mostly can’t tax it. No
VAT tax!
• International off-book transactions already exist.
• Taxation? Maybe, maybe not. Check with Al Capone.
• Enforcement of monetary policy? Check with the Cartels.
• REALITY CHECK: Does ANYONE actually believe Russia-Iran-and-China aren’t
doing business despite “international sanctions”? That.
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

13. LIBRA
• Zuckerberg proposed global currency
• Switzerland NGO (proposed)
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

14. FRAX
• Former Fed Nominee Stephen Moore to Launch a
Fractional Reserve-Backed Stablecoin Frax - Fortune
Magazine, Monday Oct 21, 2019
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

15. “SMART CONTRACT” EXAMPLES
• Elections - issue a token that expires?
• Auto adjust value (tethering is an example)?
• Adjust interest rate if securitized?
• MLM pay multiple people up the chain?
• Futures market for athletes and performers (fantasy
football for e-sports anyone? They’ve got the GPUs and
know tech somewhat)
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

16. THIS IS A SMART CONTRACT IN SOLIDITY BASED ON ETHEREUM
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

17. POSSIBLE OUTCOMES
END OF MONETARY POLICY AS AN ENFORCEMENT MECHANISM
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

18. THIS SLIDE LEFT BLANK INTENTIONALLY
[REDACTED]

19. “MONEY NEED HAVE NO INTRINSIC VALUE.”
― JOHN LAW
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019

20. @eschipul @tendenci
Company: www.tendenci.com
Slideshare: www.slideshare.net/eschipul
Blog: www.eschipul.com
Twitter: www.twitter.com/eschipul
We just want to change the world as we know it. And we are.
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019
ED SCHIPUL
TENDENCI - THE OPEN SOURCE AMS
CEO/FOUNDER

21. INVESTMENT INQUIRIES WELCOME
Presentation to www.laccnyc.org by Ed Schipul, CEO, https://www.tendenci.com and https://www.eschipul.com
All opinions are that of the author and should NOT be used as investment advice. All Rights Reserved. Further this is a fast moving industry. This is specific, even in opinion, to 10/22/2019