Hello, I'm Nelushi and I'm an analyst from ID Tech X. Today we're speaking to cluster imaging. So who are we speaking to here? My name is Semyon Nisenzar and I'm the founder of cluster imaging. We have computing depth, accurate depth using multiple cameras. And this, we develop two prototypes. One is for DSLR. Another is Mini, which we do video. And this will be used for automotive. It could be also used for factory automation and for security. Our target is automotive. And we are better in terms of resolutions than LiDARs and RADARs and much cheaper. OK, that's really excellent. Yes. I have a couple of questions about this product. So are you using a standard stereovision strategy to get your 3D images? We have much better than stereo. We have multiple cameras, stereo is in two cameras. Oh, I see, I see. OK, how many cameras do you have? This is number of cameras. Right, OK. So for our image, you can shot that. This is a depth map of we shot several days ago, which show distances. The color shows distances. And it's very accurate. And it's produce video, which supposed to put in the car. And it's either complement LiDARs and RADARs, or it's better. For medium distance on the street, we are up to 150 meters. And it have average, very accurate images. OK, so you're proposing that in an autonomous vehicle you can have your camera system and perhaps complementing one or two other technologies. Yes. You also mentioned that we could use something like this in an industrial vision situation. Yes. So what would we be using this for? Is this for high value components, and you want a 3D, a precise 3D image of it? Is that what you're using? Basically, we create precise 3D imaging. And it could be for inspection. It could be done in IRVR for robotic motion, because we are much more accurate at existing technology. Because we have multiple cameras and our advanced patented algorithms. So we can produce very accurately the distance. So if you take a robot arm and move it, you need to exactly where you put it. We are doing much better than anybody else. OK, so if we are using this for an inspection application. Is this something we could mount onto a production line? Or would this be more aimed at testing and prototyping at scale? Anywhere. Whenever you can use the distance, it's fine. Right, OK. It also can be used for security applications, the same as automotive. We need to put, this is a regular sensors. But when we are planning for next industrial prototype with automotive grade cameras, which can do day and night all the time. And for security, it will be very good. Because for security, important to get rid of false positive. Since we know the distance, big truck far away is not a problem. Or cat waving tail near the camera is also not a problem. Just go to right distance. So but our main target at this moment is for automotive, autonomous driving. And semi-autonomous. Autonomous will be long ago, but there's still assistance. Like for example, our car, our system can be used very well for parking. Now you have nice images of parking, but you better have also distances. Just to make sure. Definitely. Right. And on the side, the cars right now put multiple cameras on the side and front and back. And we can work with other guys in all of this and replace some of them or work together. For example, radar is very good for all weather kind of things. But it's very poor resolution. Yes. And we have very good resolution. So we can compliment. Yes, if it's fog and snow, maybe radar will not work. And us, work a little bit better than radar, but very bad condition, radar will work. For radar, radar is good for a very long distance. But for medium distance, we are much better. OK. So what about the actual image processing software? Is that something you provide yourself or are you working in partnership with a specialist software developer? We are doing our own software. And we are using standard parts. OK. Right now, we are using PC and Android devices. But we are planning to develop industrial prototype using NVIDIA. OK, excellent. So be part of the ecosystem and NVIDIA and can compliment all other components. Like you have a radar and then you put point cloud and you can combine their information with our information. How many cameras do you have? OK, we have a patent for multiple cameras, multi-resolution. And this is 21. This one, the fourth time, is 5 megapixel. And this is 2 megapixel. And it's combined. For DSLR, we use all of them. For video, we use only five. OK. And you're saying this and this just shows the range of applications you can have. And the type of cameras you can integrate into your system. Yeah, we use standard cameras. We can replace if needed, based on the customer. Yeah, certainly. So what about this setup right here? How does that differ? And how many cameras is this system using? It's the same number of cameras. But it has a big DSLR camera. So it's a full-size DSLR image with depth. OK, excellent. And this is whatever we have here. OK.  Yeah, it's a cell phone camera. But we want to replace them with automotive-grade camera and make industrial prototype. So we are starting up and looking for investment to make industrial prototype for automotive. Are those FPGAs? It's all of FPGA, but it will be done differently. Right now, some chips will merge multiple images together and we will start designing the new version, which is cheaper and more compact. And it will be like this, size of a couple inches. OK, that's really excellent. Thank you so much for that interview. Really appreciate all that information you've shared with us. Really great product. Thank you. Is this better than Tesla? I don't know. I believe it's better. You think you're the best? Yes. All right.


Hello and welcome to live tutorial Tuesday in this presentation, we will be going over a problem in which we will be entering the data into the financial statements in the format of an Excel problem and we will be entering that same data into QuickBooks to see the relationship between the Excel data as we do it kind of more by hand and the traditional by hand type of accounting structure when we learn accounting. And then we're going to look at it in QuickBooks in terms of the data input that most people nowadays will do whether you're in a large business or a small business. Idea being to look for those areas where the accounting theory is relevant and how do we use that theory in terms of accounting software that will be the objective here. We've had a few of these prior so if you haven't seen the prior lectures that's okay. We're going to start in part four here I'll tell you what we have done before. We don't need that in a prior information to move forward from this point because we're going to start at this point and it'll be a point that we can start at and move forward from here if you want to go back and look at that process. The idea here is that we're going through the steps of the accounting process in terms of generating the financial statements by hand and looking at that same process in a system, a database and accounting database like QuickBooks to see what the similarities are to the two types of processes. Last time we have been putting in journal entries in terms of both Excel and also putting those journal entries into the QuickBooks and in order to do that we need to, especially on the theory side, understand what debits and credits are, what normal balances are and how to enter journal entries. Then we went to Excel and there were some times or we went to QuickBooks and there were some times when QuickBooks will basically try to make it so we don't need to know as much of that stuff but the idea here is that we want to see those areas where we still need to know some of this stuff and when it's applicable, how it's applicable, how we're going to need to know how the thing gets put together. And that happens in a similar way as basically needing to know something about math even when using a calculator, meaning if we put 20 times 20 into a calculator we would still need to know that if the answer came out to be five, for example, then the data is probably not in there correctly. So that setting up of the data, that entering the data, the setting up of the system, those are areas where we still kind of need to have some good understanding. Once that stuff is set up, then it's possible to set it up in such a way that we have data input individuals that can input data with very little accounting knowledge but really the value now is in understanding how to set the systems up and so that's what we're trying to see as we go through these two processes. So we've got our T account here and we needed to first of course memorize the assets are going to be on the left-hand side of our board of our T account here, the liabilities on the right-hand side, equity in terms of the capital accounts of retained earnings, right-hand side credits, and then on the income statement, revenue as a credit expenses are a debits. We're using a similar cheat sheet as we go through this whole process, that cheat sheet being the trial balance. The trial balance is a great cheat sheet and we're going to have it open as much as possible as we go through here. Then we had the rule that basically said if we want something to go up, we do the same thing to it. If we want something to go down, we do the opposite thing to it. This seems abstract when we look at it at first, but if we go through these rules multiple times, it starts to pull together and it starts to make sense. So repetition is really going to be helpful here. This basically just means that if we have a normal balance debit, then the same thing will make it go up a debit. The opposite will make it go down a credit. If we have a normal balance credit account, the same thing will make it go up another credit. The opposite thing will make it go down a debit. So as we go through the journal entries, we just need to repeat that in every journal entry and that starts to make sense so that we can understand what the language of debits and credits are. So that's going to be the quick side of it. Then we're going to use this Excel worksheet this time. This is what we've been using before. You can see that this one has a few tabs prior. That's what we've been working on in the prior presentations. Again, you don't have to know that from this point forward because this could be a standalone topic or it could be thought of in the context of the bigger picture. And we want to kind of see it in both terms. So in terms of a standalone concept from here forward, the idea is that now we have a trial balance and we want to make that trial balance into the financial statements. So we've got the trial balance. We know it works because the debits equal the credits. We can see the debits equal the credits, meaning the debits minus the credits, how it's represented in this particular trial balance is zero. That means it's in balance. Therefore, we should be able to reformat that in terms of debits and credits for the balance sheet and also tie in the income statement and the statement of equity. It has to work. If the trial balance works, it has to work. What we did last time, just to put it in the bigger context, the bigger picture context, we did the journal entries and we started off a new company. So we're saying it started in May. We did the transactions in terms of journal entries in May. We posted those to the general ledger. The general ledger then created the trial balance. We did that same information in QuickBooks as well, just putting that start in a new QuickBooks file, starting that information, putting that information into QuickBooks. This Excel sheet and QuickBooks is available during the presentations. If you wanted to download that, take a look at it, work through the problems with us. We're going to be at this point in time, so the prior data will be in there. We also have a live worksheet, which is Google Sheets. Google Sheets is another one that if you don't have Excel, Google Sheets does the fundamentals, which is what we need to do. Excel does a lot beyond that in terms of formulas and whatnot. So it has a lot more broader capabilities, but most of people just do adding and subtracting. That's all we're doing here. This whole worksheet, it looks like it's got a lot of numbers and whatnot, and it's got some kind of colors and formatting, but most of that stuff, that's the fundamentals, not complex formulas. It's just if we take it one cell at a time, not that difficult or complex, at least in terms of spreadsheet programs. If you go to Google Sheets, you can download the Google Sheets as well and or work the problem live, and multiple people can actually work through Google Sheets if you wanted to do that. The QuickBooks file is also available, so it's in the link below in the description if you wanted to download the QuickBooks file, which we'll start at this point in time. The QuickBooks file, however, is going to be something that is a backup file, so you would need the QuickBooks program. I don't expect everybody to have the QuickBooks program like they would be able to have Excel or Google Sheets, Google Sheets being free. If you want it, it's there, and it's something that we're going to use basically to go back and forth in order to answer this question like what would happen in real life if I went to the workplace and I'm using a database system such as QuickBooks. How does that relate to what we're doing in terms of theory putting stuff into a spreadsheet? Okay, so that's going to be the resources, so we put that information in, then we took this balance, the trial balance, and we took it to the adjusting process which we kept separate in our minds. Different set of rules, I'll let you go back and look at the adjusting process, process rules, but in an accounting system we could still just put that into the general ledger, but oftentimes we break it out in a separate worksheet so that we can see what the unadjusted trial balance is, what our adjustments are as of the cutoff date, and then have our adjusted trial balance. And this is also one similar closer to the type of thing that would be done in public accounting, meaning we're kind of testing the balances or making them correct on an accrual basis as of the end of the time period. Not necessarily because there were errors in terms of the normal accounting process, not in terms of kind of auditing, but in terms of the normal accounting process we set it up so that we know that we're going to make these adjustments at the end. So then we have this adjusted trial balance, this is just basically a trial balance, we have these different names for it, the unadjusted just means we haven't done the ending adjustments yet. And these are the adjusted trial balance, it's just the same as just the trial balance, but now we've done those ending adjustments. Assuming at this point we've done everything we need to do to the trial balance, meaning the accounting department put their data in, and the data's been put in there, and then we did the adjusting process at the end of the time period. We've reconciled the bank account, and we're ready to take these numbers and make the product that we make, and that of course is the financial statements. And that's where we're at now, so you could think of it as standalone at this point, we've got this is the format of our data, kind of like a puzzle piece, we're going to take that data, we're going to reorganize it in terms of financial statements. So we're going to go to this tab, I'm on the third tab now, and we're just going to take this data, which is ordered in terms of debits and credit, reorder it for financial statements in terms of plus and minus financial statements. Now, as accountants, if we know debits and credits, we can kind of get all the data we want from or at least a lot of the data from just a trial balance. It's kind of a cleaner way to look at the data in some ways, because it's kind of looking at the building blocks. For example, if I wanted to know what the assets were, I can just highlight the green accounts. Excel sums them up to 4660, right, the liabilities sums up to 4376. The net income is the credit here minus the debits, that's going to be the 3684, which is going to be added up. If I want to know what total equity is, that's two ways I can do it. We can add up all the blue accounts, equity down 41684, that's what is basically owed to the owner of the net value, the net value of the company, or its assets, debits, minus liabilities, credits of the 41684, which matches of course all the blue accounts, 41684. Notice that the trial balance is kind of a simple, really compact way to have all the data, that's the point. We're going to blow it out into a more complex way of having the data, but a way that more people can read, that way not dealing with debits and credits, that way being the financial statements, the balance sheet, the income statement, the statement of equity. That's what we're going to do. Now when we look at QuickBooks, QuickBooks does that. So when we enter the data, QuickBooks is already just going to crank out these reports, that's what QuickBooks does, that's the great thing about QuickBooks. What we want to do, just like what we want to do with a calculator, is basically know how to enter the data, how is the data being processed, how is the data going from the input to the end result, so that if I look at this end result and something funny, something doesn't look right, we can go back and test the data. We can set up the system so that the data will be produced correctly. We can set up the system so we can categorize our accounts and know how these accounts should be set up. So we can see our trial balance, if I was to generate a trial balance. All we've done here is enter the same data into QuickBooks, and QuickBooks just generates the trial balance, here it is. And QuickBooks is just a jigsaw puzzle. So QuickBooks can just take these and reformat to any programmed reformat in that has been programmed to QuickBooks. And QuickBooks will of course have the balance sheet and the income statement as things that they are programmed to reformat. So the balance sheet here could be a couple different formats. We could have a general format, or we can have a summarized format with less detail. But we'll go over that in a bit. But the point is that the assets equal the liabilities plus the equity here. And we're going to see how that is done from the data based on the Excel sheet that we have been putting together. Alright, so that's what we are going to do. I'm going to take a quick break, make sure everything's working as it should. So here's the first comic, and I will be right back.


How strong is your chi? Is it weak? Is it strong? Is it as strong and powerful as a superhero? Well, let's find out. Welcome to the Prosperity Alchemist channel and I'm David Wong and we're going to show you how you can measure your chi and how you can measure your energy field around your body. So for many years, I've been searching for a way to prove that chi exists and to show people that chi is real. It can be measured, it can be duplicated, and then it can be quantified and it can also be repeated. Okay, so that's what science is. Science is based on those three criteria. It has to be duplicatable, replatable, and quantifiable. So I've been doing a lot of research and finally I discovered an invention by Dr. Konstantin Korokov and he invented something called the Gas Discharge Visualization Technique and based on this technique you develop a camera that's able to take pictures of this energy that comes off from your body. So what I'm holding my hand right now is called the GDV camera. It's called the Gas Discharge Visualization Camera. Okay, and what it does is it has a special lens inside. Special lens inside that can is a highly sensitive lens that can measure the and take a photo of the gas discharge from your fingertips. So our bodies are electromagnetic. We all know that now and we have no electromagnetic field around our whole bodies. The strongest organ that has the biggest field is our heart and but also surrounds our whole body and regenerate electromagnetism throughout our organs, throughout the nervous system, through our bones, and through every part of our body. So for some people that's weak, some people it's strong. So that's what we're measuring with this GDV camera. Now whenever there's magnetism, it excites electrons surrounding whatever's around that electromagnetic device. So the air around your fingers especially or any body of your body will be excited and will have a different energy. So what this camera does is you insert your fingers into into the hole and place it onto the onto the plate onto the lens and it'll take pictures of the energy around your fingertips and why the fingertips? Well according to Chinese medicine and Ayurvedic medicine, if you cut your fingertip up into pie slices, each part of your fingertips will present a different meridian, present different organs in different parts of your chakra and so on. So by measuring the energy that's coming out of each part of your fingers, taking a photo of that and then extrapolating that onto a diagram of your body, now you can see exactly how strong that part of your aura is, how strong that part of your body is, whether it be an organ or a body part. So let me show you. Okay, so here's what the software looks like. And for example, I'm going to just take a scan. So I do a full scan and all you do is you start with your right thumb. I'm going to put it in, place the right thumb on the camera lens and click scan. It's going to take a picture of that. Okay, and then I put in my next finger. It's hard to do it at the same time when I'm doing this, holding the camera and pressing it, but here we go. So it took me less than a minute and now I have a snapshot of all the energy that's coming out of my fingers. It automatically calculates which is the orientation of the finger and we just click analyze and it just does it all by itself. All right, so here's my photos. I put it in the wrong folder. I put in this ladies folder. So it has a ladies image, but yeah, this is my picture that I just took. So you can see it shows you the energy and jewels and shows you the balance and it shows you how the aura feel looks like. So in the places that there's a gap, that means it's weak and in places where it is bigger, that means it's got more energy coming out of there and ideally you want to have a very even and balanced and full energy feel. As you can see, each one of the part of the field in your body is connected to the part of the finger. So you can see on the bottom there, it's the right middle finger and that's collected to the finger and it says right middle gallbladder. So each part of the pie of your fingers corresponds to a part of your aura and part of your body's aura. So that's how they connect the images to the aura of the person. Okay, it's also chakra alignment. Right now it's 91% chakra alignment.  Ideally you want to have really big, see, want to have really big circles in the middle aligned perfectly like that. That's the ideal. So it shows you your yin and yang balance. So they're based on the meridians. So it will calculate the energy from both sides of your meridians from the heart, lungs, liver, spleen, kidneys, pericardium, small intestine, large intestine, gallbladder, stomach, triple warmer yang, bladder, energy. And this is from Chinese medicine and also from Ayurvedic medicine. And it'll show you normal, it's green, and then when it's a little bit low, then it's orange. So right now my stomach energy is a little bit low. It shows you an analysis of the emotional pressure, whether you're stressed out or whether you're calm. Right now I'm here, which is pretty normal. And your energy level is optimal, almost perfect. And left and right symmetry is not optimal, close to there. And the organ's balance is optimal. Also, so she's your health status. So ideally you want to have a round circle like this. And each one of these lines presents those organs again. And the further out it goes, then that means that more energy is in that organ. The further in it is, then that means that's less energy. So ideally you want to be optimal, you want to be right there. And this is not bad, it could be a lot better. But some places where it's going into the orange is the place that you need to be more aware of. Also shows you your energy level reserve. So how much energy is in your batteries. And how much optimal energy optimally you want to have that. And right now I'm 59%. Okay, so let me show you a scan I did for a friend. So this is for someone that has, so you can see that she was having some, a lot of gaps in her energy field. And she's someone that had a shoulder injury. So you can see that the shoulder has less energy. Okay, and you can see that it's a week in some areas. So 33 joules of energy and 85% balance. Here's her chakras. You can see her chakras are small. So that means there's not much energy coming out from them. But her alignment is okay, it's 94%.  Now as you can see, she's a little bit stressed out. So we need to get that down to optimal. Energy is low and symmetry is low and then organs are okay. But what's alarming is her health status is very weak. You can see that all her organs are almost in, are all in the orange area, or the left and the right. So that's something that she's worked on. And even more alarming is her energy reserve at 0%. So all these things she confirmed, she says that she's that's exactly what she's feeling. But now we can show it on a report and show exactly what needs to be worked on and what needs to be addressed. Okay, so what happened was we did a session with our technology, it's called a life force harmonizer. And it's just for five minutes. And she was just, you know, just relaxed lie down in between the devices. And after that, we did another test. Just five minutes later. And look what happened to her energy that was actually even compared to select these. And we're going to go and click compare.  Okay, so look what happened. We did a treatment. I think it wasn't, it wasn't longer than 10 minutes. And look at her energy field. She had 33 joules of energy went up to 42. The balance went from 85 to 91. And you can visually see that her energy level went up after the treatment. Okay, this energy field to compare the two see was, it was weaker and now a lot stronger. Okay, her chakras gain energy, you can see her heart chakra was very small, and now became a lot bigger. Her base chakra. So all her chakras became bigger. Except the this one here. Okay, so alignment is less as because we're charging her with energy.  But most importantly, is that the energy and the size of the chakras move significantly after treatment. Well, look at this, she went from a stress level. Okay, right down to almost optimal level. Okay, so she's an optimal emotional pressure. Her energy went up from lower to almost at the low optimal level. Her symmetry went from 85, which is low up to up to optimal level. And her organs balance went up to almost perfectly optimal level. Okay, remember, this is just by five minutes. And then people that use this camera and they do their own training, it takes it takes weeks of meditation, it takes weeks of training to get this kind of results to get this kind of results. Okay, to get this kind of results, this dramatic and then with our technology that developed, it took 10 minutes. Okay, so this is quite amazing how much, how much this really works. And then, you know, now I can show people you can see visually and graphically exactly how, how it's improved the person's status. So you can see this is before and this after. Look, the energy levels are almost close to optimal or a lot better. They're still in the orange, but look at before, they're almost in the red, in between the red and orange. And now all of them are some even even touching the green. Levels. Okay, look at our energy reserve. Unfortunately, it's still at zero, but they're a lot better than before. You can see before it's a lot smaller. Now it's actually starting to come up into the green level. And that's when you can get actually positive. Right now, it's still net, still zero is because still in the orange area. They can still see that it's a lot bigger than before. Okay, balance. You can see the energy levels go up a lot more. And if you want to drill down to exactly what finger, what a fingers photos are, you can do this. So what it does if you look at here is pretty interesting is if you look at the, so that's the actual photo that's been taken with the device on on that lens. So it takes this photo, then it converts it into a graphic. So you can see it clearly. And you can add the contrast to see a little bit better. And you can see the shape and outline of it if you want shows you a spectrum of the analysis of the intensity spectrum with pixel count and all that also has a has a measurement of the isoline. Not sure what that is. Okay, but that's what it has in there. And it shows you which parts of the systems need more attention. Okay, so this is really dramatic here. So left energy went from here up to here, find energy went up, right energy went up, chakra's alignment went down, that's normal whenever there's increase of energy, the chakras kind of get out of whack because you're moving so much, you're moving that energy so much. So I just showed you how to know if you have strong Chi, strong energy field or weak Chi. Well, by measuring the electromagnetic energy from your fingertips and taking a picture of it with this device called the GDV camera. Now, how do you know if you have superhuman abilities? Actually, there's been studies using this camera of people who do that do have psychic abilities. And it's amazing is that their energy fields look very different from people from normal people. They have different patterns like trees or halos around their energy field. So this is very interesting of people who have altered conscious states that show up on this camera, their fields are completely different. They look totally different from normal people. So if you have superhuman abilities, maybe now you can confirm that with this technology. All right, so I'm prosperity alchemist, David Wong, you probably have a ton of questions. If you're interested in getting this camera, my friend distributes them, you can just click on the link on this video, and you can get this camera, you can ask him all about it.  So make sure you comment like or subscribe to this channel and to learn more of this technology, how you can measure it, and also learn about the technology that I've developed that help you to basically increase your life force in the matter of minutes using this technology that my friend, we tested her and we treated her with this technology called a life force harmonizer that you can use at home to boost your energy in the matter of minutes to align your chakras and to align your organ energy, calm your senses, do all the things I showed you in this chart because this chart from this device shows you how strong your life force is. This is the basis of the life force that you need in order to create that life force engine and to create that success in your life and to create prosperity is based on this life force. So now we have technology that can measure it and to show you exactly where you need to focus on which organ is lacking in energy, which part of the chakra is lacking, what you need to focus on. So I'm really excited about this. I hope that you're really excited about it too and make sure you come to my webinar and we're going to show you more about this technology. So until next time, use the force and prosper.


Well, you're listening enjoyment John Lund as Johnny dollar Philip James Johnny. Oh, hello, mr. James got a job for you. I'm available. This is a Narsen case We ensure the business of a mr. Lester Madsen plastics old factory burnt down $700,000 police found definite evidence that rules out accident How was it set some kind of high-octane fuel any suspects? No, not yet Lieutenant rich with New York headquarters will fill in the details What can you leave? Oh a couple of hours Mind if I break in here for a moment to say a few words Just the other day I was having lunch with a group of newspaper reporters We were talking about the government and what goes into its operation when a thought struck me It's a funny thing. I said they call one branch of the government the State Department When it handles all of our foreign affairs can any of you fellows explain that? Well, one of the reporters who writes political news piped up and said Actually the State Department does more than handle foreign affairs it also publishes all of the laws that have been passed by Congress and Issues all the passports and visas for anyone traveling outside the United States Well, just then the waitress brought us our coffee and she entered the conversation Don't forget she said if you were ever on a quiz show You can maybe win a trip to the moon by telling them that the State Department has the job of making sure the great seal of the United States doesn't get lost and it acts sort of like a governmental Emily post too While she was making out our checks she added this bit of information Did you ever hear of the division of protocol? That's part of the State Department too It's the outfit that makes sure foreign diplomats who visit America get introduced the way they should and Get seated in the right places at official dinners and things like that Well after she gave us all that information we tipped her and went back to work and now I think it's time We got back to our program Expense accounts submitted by special investigator Johnny dollar to home office Columbia all risk insurance company Hartford, Connecticut The following is an accounting of expenditures during my investigation of the Lester Mattson matter Expense account item one seventeen dollars and fifty-five cents trained fair and incidentals between Hartford and New York City I arrived in New York registered at a hotel and rented a car which I drove to police headquarters Lieutenant Ridgeway was a tall nice looking man with a pleasant smile and a firm handshake Glad to help you as much as I can mr. Dollar sit down. Thanks lieutenant Now how much do you know so far only that the Mattson plastic factory burned down not all the way but nearly and that you suspect arson Positively we made our report to your company mr. James young He told me about the high octane fuel and a 10 gallon can Night watchman heard the explosion but by the time he got there the fire was out of control He could see the can and the fuel burning he could smell it to no suspects No, not yet any leads the owner You think he did it? No, no, he couldn't have with his daughter at a dinner party and you think he had someone else No, no, no, I don't think so, but you said he was a suspect. No, no, I said I had a lead. He's it Something wrong dollar. I don't know what it is first.  That's it. I'm pretty sure he didn't have anything to do with it It's too successful nice bank account wonderful home wonderful daughter Well, the factory was really worth a whole lot more than what he'll collect on the insurance wasn't well That's what mr. Uh, your boss a James. Yeah, that's what he said. Yes, that's the business. We're in the millions. Yeah No, anything this will really be tough on Mattson have to build again dies molds Well, I think I'll stop out and see him. Yeah, let me know what you think. I'll do that Mattson home was across the river in Jersey a big white colonial with a long circular drive that led up to the front door a Butler showed me into a spacious study and I was told mr. Mattson would be down shortly While I waited I walked around in case some of the first editions on the bookshelves Hello, I'm Christine I'm Johnny dollar miss Mattson. I'm waiting for your father. Oh, yeah I'm an insurance investigator About the fire. Oh, yeah, you have a beautiful house. Thank you beautiful Wonderful collection of books. Yes. I don't imagine one person could read them all not in a lifetime. No, I suppose not Do you like to read mr. Dollar? Oh, I'm sorry. I'm so bad with names. So am I Yes, I like to read but I don't get much time Been playing tennis, huh? Mm-hmm. You just got back. Do you not anymore? I used to play a little Nice meeting you meeting you Will you be saying I mean will you be around for any length of time while you're investigating the fire? Well, that's hard to say I Hope so Oh, hi, dad. How was the game? Fine Mr. Dollar. Yes, sir. I'm Lester Mattson. How do you do you two have met? Yes. Yes, I was just on my way upstairs See you later dad. Goodbye. Mr. Dollar. Goodbye Your company notified me you'd be coming down mr. Dullin you have a seat You're an Investigator that's right. The police have already made a pretty thorough investigation. Yes, I've talked with lieutenant Ridgway Well, I can't tell you any more than I've already told them You were at a party the night of the fire. That's correct. It's all in the report with your daughter Yes, when did you find out about the fire when I arrived home? I Mr. Dullin I explained to you that you've said everything to the police. Yes, that's right There's absolutely nothing I can possibly add. Mr. Mattson. You're insured with my company for a lot of money Only what I lost in the fire I'm aware of that but I have a job to do and this is an arson case That's what the police say a night watchman says so he could have been mistaken and the excitement Mr. Mattson, what difference does it make it makes a great deal of difference your factory burned you've suffered a considerable loss I certainly have I can understand how that would make a difference The fires of fire if you didn't have anything to do with it I most certainly did not then why so much concern about whether it was deliberately said or not Wouldn't you be concerned if somebody deliberately set fire to one of your factories about the fire? Yes, but buildings burn down all the time fires are started deliberately all over the country I am sure this one was an accident. Well accident or the work of a pyromaniac if you're clear you'll get the insurance you You think this is the work of a pyromaniac seems like a pretty reasonable assumption But you're sure it was an accident I don't know I Just don't like the idea of a fire like that being started deliberately. I admit. It's a little frightening. Yeah You have to understand a business like mine so many inflamables It's a little terrifying to think someone would deliberately start a fire What if it had happened during working hours? That's not very probable Read about fires in hotels people burned to death Deliberately started by some madman. Yes, the fire bug would have a good chance in a hotel He wouldn't be seen so easily most of the people in their rooms and he could get in and out easily And most of those fires are started during the night sometime But a busy factory in the daytime isn't very likely Well, I I sincerely hope you're right. I'm just going by the records. You see I I have two more plants Let's hope I don't turn out to be the exception to the rule. I doubt it Now if you don't mind mr. Mattson, I've still got to make a full report to my company. Oh I'll give you all the information I can Lieutenant Ridgeway had been right Something was troubling Mattson Until I'd suggested the possibility of a fire bug He was determined to convince me the fire was simply an accident and he'd been resentful of the impending interrogation Then the pyromaniac angle had given him some kind of an out because he'd relaxed immediately While I questioned him about the details of the fire. He seemed actually cheerful He even resurrected a few old bromides that I politely chuckled along with But he told me nothing I hadn't already learned from the lieutenant So I thanked him shook his hand at the front door and climbed back into my car as I drove off I felt sorry. I couldn't have seen the daughter again because it was certainly a sight worth seeing again And again, I arrived back at the hotel went up to my room and put in a call to Lieutenant Ridgeway Yeah, something's bothering him Did you ever mention the possibility of a fire bug having been responsible for the fire? Yeah Well, I mentioned it to him and he liked it Until I did he was determined to call the whole thing an accident When I suggested a pyro he made a complete about face Oh, he was subtle about it, but he forgot the accident theory Yeah, he seemed actually relieved. I don't know it could mean he knows who started the fire If he thought we were looking for a pyro and not some specific person that could incriminate him That would account for his letting go of the accident theory Agree with a pyro theory and hope we do the same Oh, what could he gain financially he ends up in a hole. Yeah insurance doesn't figure Oh, he's loaded got all the money he needs and it's something else Somebody started that fire and I'm pretty sure Matt's and knows who and why We've got to do is find the who and why well, I don't mind working on the case for a while Have you seen his daughter? Yeah Maybe she started the fire She's the type that could I just met her for a minute and I'm still smoldering The lieutenant suggested a stakeout for Lester Mattson. I Told him I checked with him later Took the cold shower it changed and went down to the hotel bar to freshen up a bit It was about 430 and I was pretty fresh when a page came wandering through calling my name He told me I was wanted on the phone Johnny dollar, this is Christine Madsen Mr. Dollar. Yes Hello, I found out where you were staying from your company. Well, that's nice Why did you find out where I was staying from my company? All right, why I don't want to meet you at your hotel. I have to be very careful. Well, so do I If certain parties saw me with you my father's life would be in danger. Is this about the fire? Yes, it is Sure, I'll be the guy with a fire extinguisher and have attained the highest office in our land the presidency of the United States Can you guess the name of this man? He has been called a lawyer by profession a fighter by choice and a politician by force of circumstance And he was outstanding in all three fields In 1788 at the age of 21 he was appointed public prosecutor for the region, which is now, Tennessee As president he was the first to introduce the national convention for the nomination of presidential candidates During his campaign for the presidency His opponents attempted to smear him by an unwarranted attack on his wife Rachel Who never recovered from the ordeal and died just before her husband's inauguration? If you don't have his name by now, here's one more clue During the battle of New Orleans as major general of the army. He accepted the help of the pirate Jean Lafayette Who was he? Andrew Jackson seventh president of the United States His life is part of your American heritage And now with our star John Lund We bring you the second act of yours truly Johnny dollar as long as the lovely miss Madsen was picking me up in a cab I left the rented car behind and charged up expensive count item two $1.65 cents for cab fare from the hotel the fifth and 115th streets It was getting dark by the time I arrived I waited for about ten minutes until Christine Madsen's cab pulled up at the curb and she opened the door for me Go ahead driver Well, good evening Not a bit Where are we going? I just told him to drive around Mr. Dollar my father's being blackmailed in connection with the fire. He had nothing to do with the fire mr. Dollar But he knows who did yes They burned the factory to frighten him to make him pay the blackmail you mean someone is shaking him down Well about a week ago. He was approached by two men. They demanded he paid him a certain percentage of the profits from his business in Return for the percentage they guaranteed him protection So he didn't pay and they set fire to the factory. That's it. Why didn't he go to the police? Well, he was frightened. Well, he couldn't have been too frightened if he refused to pay them. He was frightened for me But maybe he could bluff them by not paying But he didn't want to take a chance and go to the police before they might really do something serious losing a million dollar business It's pretty serious. He tried to bluff them and it didn't work Now he's really frightened He knows they mean business and they told him if the police ever find out They'll do something a whole lot worse than just start a fire do something to you Dad's afraid of and you're not of course. I am Aren't you taking a pretty big chance telling me about it? Well, you're not the police and I have been very careful. I Was hoping you could help without it being necessary to start a wide open police investigation You're not giving the police much credit if you told them the same story that have kept it completely under cover Oh, I thought about it, but too many people would have to know about it There's always the chance of someone saying something or slip up. How do you know about all this? Well, my father told me of course just like that daughter darling two men have been trying to blackmail me silly He said nothing at first. He kept it from me But is he my father and I are very close mr. Dollar. We've never had any secrets After the fire when I saw how disturbed he was I made him tell me does he know you've come to see me He made me promise not to tell anyone Well, I just had to He's agreed to pay the minute you know what that means Mr. Dollar, will you help? Well, I'll do what I can but it's gonna be tough without your father's cooperation And you'll never be safe until these men are caught. He's afraid of what might happen before they're caught Wait, they find out there's no middle of the road in something like this. He's got to understand it I think he does but Well, he'd rather lose everything than lose me I'm all he's got and he's pretty important to you, isn't he more than anything in the world Without his cooperation. I doubt if I'll be able to do much and if he gives into this Man like your father. It'll keep growing until it kills him What do you want me to say tell the driver to take us to your father? Say it's all right for me to talk to him. She looked as though she might cry But she didn't She gave the driver her address then sat back in the seat and kept looking straight ahead While the cab headed across the bridge for New Jersey Expensive car item three $11.75 cab fare which I insisted upon paying after we arrived at the Mattson home The butler met us at the door and Chris led me into the study where her father rose to greet us Hello my dear Mr. Donner. Good evening, Mr. Mattson Dad I Told I had to believe me. Mr. Mattson. It's the best thing Chris My dear girl this this can be very serious dad. It's already serious. I know I know but Tell me do you intend to bring in the police mr. Donner? I promised your daughter. I wouldn't unless It was absolutely necessary. I see you you know everything. Yes, dad. I Told him everything, but you've said nothing to the police as yet No, I haven't Mr. Donner if these men find out that you know who are these men mr. Mattson Mr. Donner I Would like to tell you something In the past I've always confided in my daughter This time I hesitated because of the the possible consequences But nevertheless I I told her I Did so with the provision that she keep the affair a complete secret. I I'm not angry my dear Believe me I'm sure you did what you thought was best Unfortunately, you just didn't realize the gravity of the situation Certainly, I realized it. Yeah, you couldn't have you couldn't have these men aren't fooling They've already destroyed a million dollar business. It was just lucky. There wasn't anyone in the building So you're gonna give them what they want? Yes, mr. Dollar, I am You can't win I'm not expecting to win I'm just thinking of my business my family What would you do in the same situation to dollar? I? Think you'd do exactly what I'm doing. I don't think so That's easy to say look mr. Mattson.  Don't you think I've thought about that? Don't you think I've considered every possibility? They'll bleed me and bleed me until there's nothing left. I realize that But there's no alternative It's that all afraid.  You're my whole life Well, then dad consider me a little consider Good lord. That's what I'm doing. That's all I'm doing not now What about a year from now two years five years? If you give into these men, what will it do to you? What will you have left five years from now? The business doesn't matter. I'm not talking about the business We can both get along without the business if we have to we did once we can do it again I'm talking about you What will happen to you if you get into this terrible blackmail?  If that happened, I just assumed he'd dead Daddy would ruin you and that most certainly would ruin me There'd be nothing left of us nothing of what we had We'd just be alive Makes a lot of sense. Mr. Madsen. I hope you'll see it and help me get these men Whether you do or don't I've got a job I'll try to steer clear of the police as long as I can because I made a promise to your daughter But I'm gonna try and get those guys They have to be gotten please I Don't know Chris. I Where the man mr. Madsen Talked off with the window and caught Madsen in the chest It was a swell punctuation point for my pep talk and freedom Before Madsen hit the rug I was on my way to the study door with my gun in my hand outside I circled at a spot near the window where the gunman had been standing. I stopped and listen Inside the house. I could hear Christine Madsen phoning for a doctor And from not too far away toward the front of the house. I heard a car start I ran out to the drive and spotted the car pulling away about 50 yards from the house Get back in the house Chris. But dad's bleeding. I can't stop the bleeding. How bad is it? I can't tell I called Dr. Phillip get back in that house and wait I got the car, but there's a man in that car with a shotgun. He may still be able to use it Now go on I started down the driveway for the wrecked car It was on its side Wrapped around a big oak the only thing moving was the right front wheel still spinning slowly. I Reached the car and looked in The shotgun twisted by the impact lay on the floor The man who fired it was halfway through the windshield his life running out all over the hood The driver's seat was empty And your gun back over your shoulder Okay, I'll walk back to the house police will be coming any minute. I just want a car Borrowing one of mr. Madsen's how far do you think you'll get? Not how far I'm going to get how far we're going to get You're an insurance man.  I? Couldn't see his face Kept behind me with his gun pointed at my back We went around to the other side of the house to the garage and stopped He shoved the gun hard into my spine open the door I Started to open the big garage door a car swung in the driveway And we were suddenly framed in the glare of its headlights I knew it was the doctor the man with a gun in my back didn't he turned expecting the police Doctor yes Your patience in the house Lester Madsen lived and later identified both men as those that had tried to shake him down They both had long records both had done time The man with a shotgun was named Ernie starbuck the other Stan Cole Starbuck they buried in Potter's Field While Cole looked unhappy not because he lost a partner more because he'd gained a new one a Cell made in sing sing he'd have to put up with for the rest of his natural life After the doctors said her father was out of danger. I went back over to Jersey to say goodbye to Christine Madsen Do you have to go right away?  Yeah Sometimes I drive up that way That would be nice When did you train leave? 430 I Don't catch that one. There's not another one until 1215 Will you be saying goodbye to dad? I thought I'd stop by the hospital on my way to the station Are you going in to see him? Mm-hmm? Driving with me we can see him together Maybe have a quick drink afterwards. I don't like quick drinks No Johnny Yeah Would it make so much difference if you took the later train? Oh, it sure would but I'll take it Expense account items four and five one hundred three dollars and seventy five cents car rental and hotel bill Item six nineteen dollars and eighty cents train fare and incidentals back to Hartford Expense account total one hundred fifty four dollars and fifty cents yours truly Johnny dollar truly Johnny dollar stars John Lund in the title role and was written by Blake Edwards with music by Eddie Dunstetter Featured in tonight's cast for John Larch built Lillian by F. Hal March and William Johnstone Yours truly Johnny dollar is produced and directed by Jaime del Valle Yours truly Johnny dollar starring John Lund has come to you through the worldwide Facilities of the United States Armed Forces radio and television service


one of the things we have we have securities and we look at the idea of leveraging this technology to say can we benefit from DLT blockchain that kind of technology as a method to tokenize in a sense real assets like in the case of securities and so on and securities trading can we do that so at DTCC I'm not going to cover everything they do here but they've already got projects in place that have already been publicly announced about ION which is trying to in a sense say we'll settle securities on a blockchain automatically and we'll tokenize the securities and settlement through a blockchain as opposed to the current way it's done today we have other projects at DTCC also based on DLT technology as well so I won't go into those but just to say that in the concept of digital assets if we're an organization responsible for settlement that means one of the things who are responsible for not only connecting to all of the marketplaces that trade those assets but we're also responsible for payments on those assets when they're bought and sold and you wind up with what I call the custody problem so wherever your whatever stock you own directly or indirectly somebody is probably a custodian for that stock you know some company and so if you're in the digital asset space one of the as a provider one of the things you have to do is solve the custody problem how do I in a sense custody all of your investments in Bitcoin or whatever it is so anyway that said if you look at the kinds of financial assets involved you could be talking about Bitcoin ether or some other crypto you can be talking about things like stablecoins right that are not as volatile they're pegged to a fiat currency of some type like it could be tether USD coin or some of the other ones in our case we're taking real securities like IBM stock and saying let's make that we'll tokenize that and so that becomes an asset that we're going to track that way and then central bank digital currencies which there are few of them in the world that have been announced most of them haven't been successful today but they're out there I can't remember it was Nick around one of the central American countries has already done that they said that they made legal tender out of a digital currency down there which unfortunately hasn't worked out well today but it doesn't mean that it won't in the future so central bank digital currencies lots of countries are looking at that lots of companies the countries have already gotten experiments and most of them are farther ahead than the US I'll say the bigger economies that are focused on it and US as often as the case in financial innovation as a government we tend to lag behind so individual companies in the US are innovative but at the government level we're usually not a leader in pioneering new financial products or services physical asset proxies that's another thing so in the case of I worked with Rhode Island there's a session the next session that I'm doing with Liz Tanner she's the secretary of commerce for the state of Rhode Island she actually pioneered a digital identity system for the state as an MVP it's not in production yet but we had a very successful MVP but she as the secretary of commerce there's a whole bunch of use cases in the state that we don't cover for things like land titles cars vehicle registrations all that kind of stuff they're easy candidates to use the same technology in the same services and by the way the stuff in the state of Rhode Island was all built using the hyper ledger platform so Indy Aries Ursa and then I was so brilliant as the project manager that I said hey if we stole all that why don't we steal more so we went and stole everything from British Columbia that they produced which is brilliant work so we took the whole virtual organizations network and started as our starting point instead of down here we grabbed all that too and so it made the whole licensing problem super simple so it took an emphasis team four months from start to finish to get the whole thing up and running in the state which is pretty amazing but again that was the head start not only hyper ledger but British Columbia trust over IP that whole organization open sourcing everything made a world of difference so it's a commercial for how brilliant I am that I knew that I should be going after open source so that's my that's my resume is I'm smart because I know how to shop rather than build something from scratch but service asset asset proxy so events that kind of stuff makes sense writes assets as well so in the arts world we have you know rights to read a book music that kind of thing the Kindle stuff and all of that so whoops there goes my screen tokens and wallets so we talk about digital assets we tokenize them usually we issue token and we have a whole token taxonomy so there's the I forget the association the whatever it is internet work association that owns the token taxonomy there's a whole thing for different token types not just fungible non-functional fungible but they have different token types to find we also have different types of digital wallets out there that you can store in files on your phone or enterprise wallets that go on to an enterprise but those enterprise wallets can store different types of token types digital credentials certificates all that kind of stuff they're designed for that and you have different types of wallets with different capabilities and also different strengths and weaknesses out there so I've had friends that have had like a metamask wallet and say all my NFTs got stolen the other day yes that does happen so any financial system whether it be digital or not traditional always has a risk of theft and loss and that kind of stuff and we the difference is the better ones actually have insurance a pretty cool idea how would it be isn't it nice that some of the things are insured so as an example DTCC when we settle trades once we receive a trade if we have received the trade and not settled it we actually ensure that for loss in a sense so if for some reason it couldn't be settled we're covering that trade which is a it should make all of you breathe these year about your 401ks a little bit a little bit anyway we can't stop the market from going up and down we don't help with that at all but it's important to think about risk and how you mitigate risk in this world so fungible tokens many sessions have already talked about that they're all the same type so one Bitcoin isn't worth more than another Bitcoin for example a non fungible token you think of things like works of art that are unique or you know different domain names on the internet I have a couple of domain names I can sell those they have different market values and so on I could issue tokens on those if I wanted Anthony Day from IBM gave us a quick chart here that I included in the handout on Ethereum token standard types these are just the common ones that are out there there's some additional ones that they're inventing but the ERC 20 was for fungible tokens like Bitcoin Ethereum 721 hers non fungible tokens 1155 says here's a token standard that's a little more performant than those two and it combines the capabilities of both of those to be more creative 4626 actually dealt with vaults because we now in our case as a custodian we're gonna say we're gonna store stuff in vaults and so there should be a standard around that and there's some newer token standards as well on trying to improve over 1155 for certain what I call derivative financial instruments like options you know things like warrants that have callable rights and all of that so this token type the token types token standards are gonna continue to evolve there's no question of that token economy I'll grab some better ideas from Andy Martin at IBM who has been tracking the space for probably four or five years in detail if you follow him on LinkedIn but we tokenized digital assets on the left there you can see features of a token economy as you have digital assets represented by a token they can be represented by anything these could be physical assets so in the manufacturing space or supply chain we represent real products and things with tokens now to make them easy to track and trade on a digital model digital wallets we talked about those blockchain or DLT is a distributed ledger of permanent transactions on a network so we already will know that that's where we're here smart contracts are just a program that executes on a blockchain or DLT that usually enforces contract terms between different parties so when I trade an asset like a Bitcoin from you to me there's rules around that governance and so on if I buy something sell something create something whatever all of those smart contracts usually have some sort of a quote governance set of terms or regulations that govern how that smart contract is supposed to work and then market places so I built a couple of market places for energy trading one for vehicle identity and a few others based on hyper ledger fabric there's other blockchain's quarter there's you know Ethereum using the basic clients here there's lots of options within the hyper ledger community and even more blockchains out outside of hyper ledger so we have lots of different market places built on lots of platforms and some of the other sessions here on cactus and some of the other things we'll talk about the idea that these blockchains don't interoperate well for the most part and so there's different models on how to do that I'll get into one of the examples we had at DTCC where we were working on this model for project lithium on CBDC but you'll see the idea that there's two different networks operating and somehow you've got a in a sense have transactions across two networks anyway in the token economy as Andy Martin summarizes that you've got the digital assets you've got smart contracts blockchain and actually what Andy points out since his background is an accountant he says that really blockchain the point from his perspective blockchain is primarily a governance system from my perspective as an engineer and I'm a data engineer by trade you know for many years before I came into blockchain is what's different is I look at blockchain as data engineering across a network except it were also adding trust engineering on top of that and that's a big difference so as a data engineer all I ever worried about is do I have good data and did I send him good data if I was happy that I sent good data my responsibility ended there I didn't give a damn what happened to him it was his problem as far as I was concerned but in the real world we always find that we had data problems all over the place with the way we shared data and everything else and so DLT offers I'll quote a better trust model not only in better integration model in some cases for use cases but a better trust model as well so anyway that's the view of the token economy if we take a look really quickly so how does this work in the industry we have banking we have exchanges and we have custodians if you will so banking digital banking there's actual real digital banks out there Kime new bank bit bank and so on my nephew actually is the chief Bitcoin officer for bit banks so he has the responsibility of making sure that I think it's 3% of the world's Bitcoin is properly managed in his bank and so he's the guy that writes the he's a Bitcoin Committer and Ethereum Committer so he wrote the some of the Ethereum wallet code but the people that run those banks tend to be very technical in what I call the DeFi space and coming up with what I call new innovations on wallets and so on existing banks though now over the last couple years really are seriously interested in saying hey you know in the case of DTCC we've always traded securities but we now want to be in digital assets to our customers do anyway and if your city bank or JP Morgan or one of the larger US banks you're going to say hey we don't want to have our customers go somewhere else to buy and sell digital assets we wanted to do it through us so one way or another city bank and others are now saying hey we reach out and be able to be marketplaces for digital assets not just traditional ones as well so exchanges of course are online markets like Coinbase and others where you can actually go buy and sell either Bitcoin or any other kind of cryptocurrency and then finally you have custody services that are sometimes independent of both the banks and the exchanges and custody services that exist out there like fire blocks copper ledger anchors they're all different some of them actually are registered custodians in different legal jurisdictions and other ones really give you a framework in a sense but don't take legal responsibility for custody of those assets so there are difference in the custodians in terms of the services they provide but it's it's an interesting thing to go through and look at them so the question there's a lot of questions if you're going to be dealing in this space from a financial services perspective I've got a long list of questions I won't go through those individually but you basically have to ask what what you're investing in do you know what what your providers can be trusted with so at DTC right now we're looking at some of the outside service providers in terms of their capabilities and we're asking a lot of these questions about what they can or can't do whether or not they're unregulated or regulated there's benefits to both so sometimes it's nice when somebody takes legal responsibility but the truth of it is if you're dealing with a customer and I have his accounts or his securities and there's a contractual legal relationship between him and my company the fact that I'm using a service provider and they're insured isn't really going to help me at the end of the day when I have a legal obligation to him in most cases in the US the fact that the custody provider may be regulated and or insured to some level isn't going to protect him and other customers from making claims directly against me so a lot of times I'll quote the advertising is better than the reality if you will of what a digital custody provider can do for you so we talked about that we'll talk about taxation so because we're in the world of finance every government only exists for first purposes collecting your money they have other motives in mind but the first thing is we need your money so that we can do anything else that we want to accomplish so understand the taxation is I'll quote a primary driver of every strategy by every government and governments actually compete with each other right so you have foreign countries competing with the US so if you are as an example if you're somebody in the US and you've done well and you want to retire and you have money there's lots of countries that would love to see you move there and bring your assets with you and spend your money over there as opposed to staying in the US so they provide strong economic incentives a lot of times around taxation and other things to help attract business and the same thing in the United States you see that one state competes against another for sure trying to get in a sense business and in a sense residents to move there so it's kind of like if you look at in the US we compare California and Texas over the last few years there's a big migration out of California and a big migration into Texas on the part of businesses and so on and residents as well so anyway people organizations are subject to taxes by jurisdiction we have governments tax laws in effect are obviously most of you know how complex they can be and also how in a sense illogical they can be but they're they're legal so it doesn't matter how illogical it is if it's been passed and it's hasn't been successfully defended itself against any challenges in court you'd say it doesn't matter how complex they are they're legal and they're required to comply with but taxes obviously are based on income property sales specific taxes gas alcohol tobacco anything the government wants to get you for they can get you for walking as a tax if they chose to they just have to figure out a way to measure it effectively so governments do differ on how to tax there's no consistency and so I guess your opportunity as an individual or a business is to say where do I want to locate and what jurisdictions do I want to be subject to you see all the time you know companies like Amazon say well we we don't really have what they call nexus in this state we're just shipping stuff through there so you can't really tax us for it those kind of things they do pay sales taxes but they do try to avoid a quote certain other kinds of regulations and taxes were possible so that happens all the time in the US so as I said the US is kind of strange there's other large or countries that also have states if you will who also in a sense wind up competing internally with each other I think one of the things the US is doing has anybody heard of the global minimum tax it's a great idea that we had here it's like okay so in the US we'd like to raise everybody's taxes what we noticed is you all in the front row want to leave and go to places that have lower taxes so the brilliant idea is we said hey let's have a global minimum tax so that every country has the charge at least 15% of your income is a base minimum tax and if we do that then you'll be less likely to want to leave the US and I can raise taxes so it's a fairly transparent scheme but the current administration has decided to push a global minimum tax so it's no surprise that they want to do that it hasn't passed obviously most countries are resistant to the idea they come back to the US and say no that that takes away our availability to compete effectively so countries on taxation are classified regulated on digital assets and they're all over the place right now so most countries haven't passed strict laws yet on regulating digital assets some have some have outlawed you know things like cryptocurrencies other ones have said that they're fine as legal you know assets and so on in the US we even have fights in our own government which is kind of interesting so the CFTC says that they think cryptocurrency should be a commodity and there's a new draft bill by Senator Loomis and Gillibrand that is saying that they fundamentally agree that cryptocurrency should be treated as a commodity like gold or wheat or something else and that's how they should be regulated and taxed and so on and then the SEC with Gary Gensler who's the chairman there says no no no based on the behavior of how certain cryptocurrencies are actually used they're really more of an investment and they should be treated like stocks investments like an IBM or Google or any other stock and so they should be taxed using capital gains taxes and all that and so there's actually a lot of disagreement within the US government at the federal level on how to do this and so recently there was a thing where SEC actually has put out a quality it wasn't a study it put out a finding I say that there were nine cryptocurrencies that they felt were violating federal security policies so none of that's resolved and of course the secure the cryptocurrencies couple of them come back along with Coinbase exchange and said no we're not we're really cryptocurrencies and that's how we are so these things are up in the air right now US Treasury in the US has a responsibility for in a sense printing our money through the US Mint so they control the actual fiat currency so if you have a $50 bill or $20 bill or whatever US Treasury was responsible for that on the other hand when we look at a digital dollar or central bank digital currency if that were to happen in the US where's that going to come from most likely I say likely because it's not law yet the Federal Reserve will have the responsibility to manage that so there's been opinions that the Federal Reserve should control that but there is no law that says it has to be done by the Federal Reserve so they have been in a sense investing in a digital dollar since 2017 that I'm aware of maybe even before that so innovations and securities so a couple of things defy finance we've talked a little bit about that but basically it's all these new financial products and services built on tokens using smart contracts blockchain and what they're trying to do as you hear on the theory is that we're going to in a sense disintermediate the existing financial system and try to get rid of it so there's a in life there's always a theory on something and then the reality that doesn't always line up so the theory is that all of these financial intermediaries are in a sense unproductive, inefficient, can't be trusted and they cost too much to use so we should get rid of them all and replace with just peer-to-peer transactions and so when you look at the systems that are out there in the defy world today and good examples would be like Uniswap or something like that they're not purely decentralized but they're close to the theory of decentralization reality is yes still it's he and I can't trade crypto currencies directly we have to use a platform like Uniswap to do that so are we a hundred percent decentralized? No and is Uniswap perfectly decentralized as a network? No but they attempt to be let's put it that way so Uniswap might be a good example of something that's highly decentralized as an exchange but a lot of the other ones like Coinbase and so on aren't even close to that and they don't pretend to be they're just exchanges for cryptocurrency and in fact they have more much more of the market than something like Uniswap so they're again the theory doesn't line up with the ability to execute well all the time or the ability even to be trusted so that's a big problem and it's actually a problem for consumers because it makes choice difficult you know most of us like me I think most of you are like me you're lazy lazy people don't want to make tough decisions I don't want to think about it I just want it to be easy but unfortunately the complexity of the defy marketplace and even the traditional financial marketplace is complex enough that it makes making good decisions difficult so one of the challenges is we have no your customer anti-mining wandering rules OFAC compliance for foreign asset accounting and control and so on so all of those regulations apply in the US and certainly most European countries have the equivalent of those regulations in place so whatever you're doing in the financial space all of the providers who are in the financial network have those responsibilities and so when you have other exchanges and crypto exchanges are they try to run away from that where they can but in reality many of them started to accept the idea that they will be regulated and that they have to comply so some of them have in a sense avoided that and other ones have said no finally if we get if we comply with the existing regulations in certain jurisdictions we're more likely to be accepted as a place to do business with and if we avoid those regulations where there's more risk so that's a big challenge right now also we have in the financial world insurance payments and loans so everybody's talked about cross-border payments or remittances from one country to another that's one use case but any type of payment loans also fall in this category insurance as well asset management of any kind of asset and then digital identity and credentials so you know most of you beyond having some sort of legal identity whatever country you're in you also have a maybe a degree from a high school or college you have licenses for your vehicle maybe licenses to operate in your profession and so on so all of those kind of digital identities and credentials are important to track as well so governments try to react and be innovative and if you look at it I guess maybe I'll say no surprise smaller countries tend to innovate faster than larger country countries on average for sure and so in my case you know Liz Tanner who I worked with at Rhode Island led me to find out that Estonia was one of the leaders on the planet and trying to do digital government for more than 20 years now other places Luxembourg Lichtenstein they have one of the most innovative financial innovation laws focused on blockchain they were smart enough to even future-proof their blockchain act which is pretty interesting compared to what the US is drafted and then Asian countries have also left led a lot on crypto so Singapore Japan where my nephew is Dubai some of those other ones have certainly done more on crypto as well on regulation and support and EU European Union has been a leader on studies and regulation as they say Europe is famous for regulating everything first and then letting somebody else innovate it so there's the the European Central Bank is has a lot of authority over regulating financial systems in the EU the World Economic Forum also provides studies on a lot of these financial and digital asset issues I also am part of the European Blockchain Observatory and Forum and we wind up doing research supports research reports on blockchain initiatives in the financial sector in other areas our reports are just reports that are publicly available but those reports wind up being input to the European Council when they consider legislation that they want to draft and then finally the big thing on innovation was the US executive order on responsible development of digital assets back in March of this year so the Biden administration issues this executive order which sounds very strong and what the order was but effectively the order didn't do anything except it told everybody in the federal government all the agencies with the exception I think of the US Army and the Navy everybody else had to study what digital assets were and how they should be managed and regulated in the US so there was it's a fairly long order but that's the net impact of it there's also which is pretty cool somehow I've got to find a way to get this handout to you see these purple things those are all hyperlinks that actually worked if you had a real handout so I'll apologize in advance I have a handout which somehow didn't get distributed through the conference but we'll find a way to get it to if you don't have it within a week or something then I'll say just get me on LinkedIn I'll give you you know the handout with the links but what's really cool this group has actually got a CBDC tracker so if you said I want to know around the world where essential bank digital currency in each country and what projects are going on this group has done a pretty good job of keeping current on that which is nice makes it easy and then this other group tracks digital identity projects and there's a sort of a global map and you can see where those are as well so now we'll take a look at some stuff this is one project I was associated with at DTCC there's something called the digital dollar project which to the credit of the found there's a digital dollar foundation and Accenture who's here as a partner actually did a phenomenal job the two of them to got together and they said hey if the US is ever going to do central bank digital currency right they sort of need to know how it should work before they try to draft the legislation to do it so with that kind of motivation what they did is they created this project and this is Christian Carla who's the director of the foundation talking about the digital dollar in sense he's talking about the value the digital dollar would have for the US economy which is one aspect of it but there's more to it than just that in terms of what the ability the value it could be to our community as a whole and same thing for any country that does a central bank digital currency Jen Lasseter is the executive director of the digital dollar project and she actually manages the operations and then there's an advisory group participants and pilot partners to look at actually what that both the challenges and the opportunities of doing a digital dollar in the US are so our company DTCC got together with the digital dollar project and said hey you guys have a bank you have a use case for in the financial system for doing security trades so since we managed the security trades in the US we'll partner with you on a project which we did call project lithium to in a sense look at using a CBDC network to pay for security trades that are settled on our network so we already have project Ion which does in a sense tokenized security settlement of trades that's running in parallel today to the current settlement network in production so that's Ion so we said okay let's take Ion that already works and let's imagine what a CBDC payment network would look like from the Federal Reserve if it were operational so the tough part of this is there isn't such a network because there can't be one till they legislate it right so the problem the law doesn't exist but they said let's go ahead and make the investment to figure out if there was a network make some assumptions assumptions about it understand how it works what the limitations are and what the challenges are and then from that we can figure out what in a sense of to in a sense inform what the Federal Reserve should do for that particular use case when they come up with a network so it was a good idea very challenging to figure out what the Fed might do in the future but they the project collectively made some very good assumptions about how that settlement might occur so the key thing was we wanted that the CBDC payments would be on a Federal Reserve network that would run the CBDC side we already have a trade settlement network over here so now we're using a second network for payments so that was the concept and so it would look something like this conceptually right so if you say we already have I'll quote the DTC network that does settlements and it does more than just custody it does payments of all kinds but over here we're saying if the payment network is going to be the Federal Reserve instead how is that going to work you're going to have two separate networks that have to talk to each other and so when we looked at that we know in a sense what our DLT platform is but we couldn't assume the Fed is going to use our platform so we can't assume that they're going to talk you know in a sense at a blockchain to blockchain level so in effect we said okay we're going to implement a blockchain on their side one on our side but they can't know we can't assume that they're going to talk directly at the blockchain level so we said the lowest common denominator is just to use API's to talk which is fine so for the time being until you know different we're using API's to communicate but the idea being that a seller has his securities if I'm selling IBM stock it's in my custody bank at Fidelity and the buyer his custody bank might be Vanguard so DTCC has to transfer the IBM stock that sold from Fidelity over to Vanguard and we already do that at the same time we're saying but the payment in a sense from the buyer who bought the IBM stock his payment bank might be Citibank and his the seller my bank since I sold the IBM stock might be Bristol County or something like that so there's this banking network here the Fed has to run that connects all this stuff for the payment of CBTC to pay for the stock that sold does that make sense to everyone conceptually it's pretty straightforward it's not a complicated problem in that sense and like anything because you're not doing a simple asset swap you've got multiple parties here as you can see so there's four banks involved two networks and you're really doing two different assets one asset you're swapping is securities the other asset you're swapping is payment so he'll say oh Bitcoin it's just an unspent transaction model that solves everything well it doesn't in this case because you've got two different swaps that in a sense has to be coordinated and so the problem is I've got two swaps and four banks and the question is what if in my case Bristol County small bank it's not Citibank or JP Morgan what if they don't fulfill their side of a swap right you know and the other swap does occur so in a sense how do you in a sense solve what I call the problem of swapping assets and the real issue is you have to have some way of doing what I call custody right it that's a trusted model for that that's the whole point so the idea being again using the example that you're going to go through this flow to in a sense do the you know two different two different swaps so that was DTCC and the idea of trying to do a central bank digital currency so finishing that that was just a test the test went well for what it's worth and so now they're writing up a report on that and that's the status of that project there's also something called Project Hamilton which is a different project from the Federal Reserve and that one was actually pretty interesting because what they were doing there was trying to test capacity so what they did is they came up with two models and they said one model they didn't even use a standard blockchain they didn't use a theorem or fabric or anything they said no no we're going to build something from the ground up that's super simple it's not a real production environment but we're going to build something on level DB with the idea that we can compare what a blockchain model is where you order the blocks you know transactions go into blocks that are ordered on a network or compare that to what if you just took a database and said every transaction is guaranteed but we're not going to order them in blocks at all and what they found was for the same transactions they could get a hundred and sixty thousand transactions a second in their test network but if they only did a two-phase commit and forgot what they call the atomizer that ordered them they could get one point seven million or ten times faster just by doing two-phase commit across a distributed network which was a good finding to see because it tells you okay if you're thinking about the CBDC network how would you engineer it in effect for performance and then finally a couple other areas of innovation the there's a something called the Fed now network earlier there was a Fed coin that was an earlier project way back in 2017 the Boston Federal Reserve created something called the Fed coin is a test model that didn't go anywhere but it didn't set sort of the foundation for some of these other projects but the Fed now network there's a new network coming from the Federal Reserve that's supposed to be a faster version of what they call the Fed wire network so major banks are connected on the Fed wire network in the US and it does what they call a CH transfers from one bank to another overnight kind of thing the idea with Fed now is it would be a faster network more inclusive bring in more banks credit unions and kind of thing and who knows maybe organizations could be directly part of that network as well so anyway the idea of being the Fed now network is coming in place it's supposed to arrive in 2024 in production but you know those are always dates are subject to change the bigger thing is that one of the in a sense board members of the Federal Reserve brainered said that you know the real issue is they're trying to understand whether or not a CBDC payment would make things a payment system would make things safer simpler or more secure and what other risks might it impose you know over the current systems we already have so all of that is the research they're working on and they're trying to figure out as they say what kind of guardrails do they need to establish what kind of regulations and I will say that digital dollar project that Accenture is one of the sponsors on is doing a really good job and trying to figure out what that landscape is so that's really where the value point is consumer protection matters everybody's aware I believe the general data privacy regulations in the EU in a sense past several years ago that was a model for everybody else US now has some privacy laws in place as well but there's all these areas of a data privacy right so your data is exposed everywhere not just on the internet not just to Google but everywhere else everybody collects your data when they don't need all that when I go to a bar to get a drink I have to show my driver's license I'm sharing data I don't need to share all they need to know is that I'm of legal drinking age you know in that state wherever it is instead I went up sharing more data so privacy is a big issue and consumer data protection certainly in the financial services world and digital assets matters as much as it does anywhere else so the idea that GDPR put out is that there are some principles for what they call data controllers anybody that collects data has access to data or manages data on your behalf has these responsibilities that they're their principles on controlling the data is the collection of the data needs to be lawful fair and transparent so they in a sense attack companies that aren't following those policies today there has to be a limitation of purpose that they can't just randomly collect data if you're trying to figure out whether or not I can drink in your bar you're not a you're not allowed to ask me you know do you have a job how much do you make a year those would be invalid questions for that purpose data minimization don't collect more data than you need to fulfill the responsibility obviously accuracy how long do you hold the data you know do you keep a copy of that or not integrity confidentiality ensure that nobody else if I show you that I'm over 18 make sure that nobody else can see that and accountability if you've collected that data you're responsible for it so all those principles makes sense for managing data privacy for sure and in the space of central bank digital currencies those same things you can assume will apply as in a sense principles for managing that so if I look quickly at legislation trends what I can see is Europe again has something called markets and crypto assets as a regulation that has passed in the EU it's not in force yet but it has passed and the European Commission's mica proposal is a framework to regulate aqua crypto assets and the service providers in the EU EU under a single licensing regime and that's actually pretty complex because like the US like the US the challenge of it is like the US the challenge of it is that the states in the US have jurisdiction for the most part over banking and insurance not the federal government except when the federal government in the US passes a law that oversees that supersedes that the same thing applies in the EU the countries have responsibility for issuing licenses and regulations around financial systems that may differ from one country to another but if the EU has set a law that applies across the EU then that supersights supersedes those local regulations so the challenge of mica is that as they say they want to give legal certainty for crypto assets they're not covered under existing laws make sense establish uniform rules so on but again that the phrase is not covered by existing law so sometimes there is an existing law the nice part about mica is that it's not attempting to replace all that those are some of the features of mica but that's what mica is about Wyoming in the US I'll I'll give you the slide deck to read through that but they were a leader in trying to say we're a state we're gonna take over crypto assets as an area that's not governed and they passed some laws back in 2019 that were very innovative they looked at what wasn't covered and said we'll take that so Wyoming managed digital assets the last thing is the US executive order on that and that was the attempt I mentioned earlier where in a sense the federal government is telling all of the agencies in the government that we want you to go through look at digital assets and figure out how they should be regulated the most interesting part of that law was or part of the executive order was it's like giving a teacher giving you a homework assignment saying here I want you to turn it a term paper but by the way a term paper that includes these facts I'm gonna give it an a so they sort of told you what the right answer was they basically said that for digital assets that are similar to traditional financial assets like security stock derivatives whatever it is they should follow if they're in the same business the same risks in the same rules they should follow the same regulations so in a sense even though they were asked to study these the department's already know what a good answer looks like if you're working in one of those departments the Loomis bill as I said earlier all that does is map back to the CFTC record recommendation that says take those digital assets and make them in a sense managed as commodities so that's really it we've covered quickly everything so we this is a set of takeaways I think the biggest thing is the fact that in the US and in the EU central bank digital currencies look likely they are going to happen how they're going to get regulated is not clear the fact that they are going to get regulated is clear at some point the other thing is both EU and US are working on building the infrastructure needed to do that correctly they're both doing studies in a variety of different ways to figure out what makes sense for a central bank digital currency and digital assets what you are seeing is there are some things that are saying certain things are now in a sense clear about what's going to get regulated for what's worth so that's the end of it want to thank you all for going through a quote a long presentation on digital assets and legislation but really legislation stuff to net it out is really just a risk model where are we now what's likely to happen and we're likely to see with some of the work that's been done from both some of the agencies and some of the private things like digital dollar projects we're getting a sense of what a central bank digital currency would look like in the US and in the EU we're also getting an idea of what that would look like for EU as well so with that I want to stop time's up so I want to thank you all and good luck with your digital wallet and your digital dollars