GoCoin CEO Steve Beauregard discusses the GoCoin Bitcoin payment gateway solution for merchants. If you are looking for a Bitcoin or Litecoin payment processor or payment gateway. Watch this video and discover how to integrate Bitcoin into your business as a merchant or a developer through the most extensive Bitcoin API available.
Bitcoin conference Steve Beauregard of GoCoin and the bitcoin payment processing API
So what I want you to consider here today, is "what role will Bitcoin and digital currencies in general play in the global emergence of payment systems". Because here we are, twenty years into the internet world, a global connected community, and this is the state of the art. This I took the other day at a sushi restaurant, there's four terminals here, all of them from different banks, none of them talk to the same systems, and that's the state of the art in payments. So you have a broken system, and we're here looking at an opportunity where we could literally save hundreds of billions of dollars by improving this and centralizing with a single currency, because that's the best way to bring down barriers.
You look at the Euro, you look at how it's unified a lot of the currency across Europe and we have the same opportunity here. Is this possible? Can we trust Bitcoin? I mean we're gonna blindly send a transmission over a wire? So none of this is really possible without some sort of a trust system, some sort of transparency.
You know, let's take Uber, for example, if anybody's ever used Uber to get a ride instead of a taxi, where you make the request right from your smartphone, and you see the driver who's going to pick you up, and his rating, and what people have said about him, and you say "hey, this guy has 3 stars, I don't want to get in his machine". But you do if they have 5 stars, and meanwhile the driver gets to look at you, so there's trust. A bond is built. So what's working against that trust bond? This guy (gestures) this guy's working against that trust bond, okay?
So it's the fear economy, it's the big fear, of the unregulated Bitcoin. Everybody knows that Bitcoin is used for selling drugs and trafficking humans and all kinds of bad stuff, like child pornography and money laundering and , oh! Did I say money laundering? Well that only happens with Bitcoin, right? Well, actually it doesn't. In December 2012, Standard Chartered Bank was fined for 133 million dollars of money laundering. They're regulated, but they play by different rules, absolutely, but they still have a problem. The same month, HSBC, part of a 1.9 billion dollar settlement, part of it was for bulk cash transactions. Where they're sending bulk cash for international crime rings, allegedly. But they settled it, nobody went to jail! Sorry, we'll just pay a bunch of fines, 1.9 billion and there we go!
So what does all this mean? I would argue that here we are, looking at social networking and the types of payments that we're talking about, most of the people have transparency, they're on social networks, their real, true identity.
So what are the drivers? Some of the obvious ones, hyper-inflation, you see it in Argentina, you see different countries where the currency... you're losing money every day, you say "hey, I better move my money somewhere". So the big opportunity that I see is really the unbanked people that have never been able to participate in online shopping. You know, in Indonesia, 13% have bank accounts, and it's a really, really crazy low number. All these people can't shop online, they can't play games online, all they can do is go buy a little scratch card at the 7-11, and they go back to scratch the back of the card. Well, 20% of that money ends up going to the 7-11, to the processor of the payment, to the guys that make the cards, all these people in the ecosystem making money.
One other point I want to make here is Zimbabwe had hyper-inflation, and what happened, the de-facto currency quickly became the US Dollar, even though it was illegal to make another currency, a foreign currency, your day-to-day currency.
So let's talk about the differences here, if you got currencies here, centralized and decentralized. You have the US Dollar. 56% of the worldwide transactions happen in the US Dollar. In terms of reserves, money that other foreign countries hold in reserve, 66% are for foreign currency reserves. Second to that is the Euro, which is about 25% of the reserves.