The Blockchain Challenge for Tokenization: Private vs. Public?
Dealing with AI hype while keeping the faith in AI are not mutually exclusive.
Thanks for reading the “Cashless” newsletter, an insider’s view on Asia’s fintech, CBDC, and AI for anyone striving to understand “the Asia Century.” I’m Rich Turrin, and these are my hard-hitting insights designed to educate and inform. Subscribe to get these emerging trends directly in your inbox every Sunday. Every week, I scan thousands of articles to find only the best and most valuable for you. Subscribe to get my expertly curated news straight to your inbox each week. Free is good, but paid is better.
Topics:
The Blockchain Challenge: Private vs. Public!
Tokenization: The $19 Trillion Revolution Waiting To Happen
AI Is Transformational Technology, But Be Wary Of The Hype
G20 Falling Short On Slashing Fees On $250T In Transfers
Crypto and DeFi Reach "Critical Mass," TradFi Stability in Peril
Bonus Read: OpenAI: Identifying and Scaling AI Use Cases
Happy Easter!
I would like to wish everyone who celebrates a Happy Easter Sunday! May your Easter be “The Real Thing,” as inspired by Keith Haring’s Easter art above.
Our first two articles focus on blockchain and are related. The first examines the use of private vs. public blockchains, while the second explores the $19 trillion tokenization market.
These two articles are tightly intertwined because banks and exchanges are unlikely to risk a theoretical $19 trillion market on public blockchains operated by others and accessible to everyone.
All participants in the exchange of money and securities are accustomed to managing and transacting on proprietary or consortium networks, and it seems improbable that they will suddenly abandon this practice.
Is it realistic for blockchain enthusiasts to continually tout the migration of trillions of dollars of assets to public blockchains? I don’t think so, the market is too big for banks, brokers, and exchanges to abandon.
Next, we revisit “AI Hype” in a report that examines its prevalence and even strives to define it. Of several definitions, the one that resonates with me and the topic I write about most frequently is: “any claim or narrative about AI’s performance that lacks rigorous empirical or theoretical support.” Sadly, the report shows how we are on our own to discern what is or is not AI hype.
The G20 “Payments Roadmap” sets targets for prices and speeds of cross-border transfers, including wholesale, retail, and remittances, which will take effect in 2027 and 2030. Unsurprisingly, most of the banking world is far behind in attaining the targets.
The incumbent bank-run transfer networks are ill-suited and unwilling to meet the G20’s unenforceable targets. We must rely on fintech, stablecoins, CBDC, or something else to get the low-cost, high-speed payment transfers we deserve.
According to the BIS, crypto is now at “critical mass.” This raises the real concern that crypto, DeFi, and stablecoins will leak into the traditional finance (TradFi) world and destabilize it. Ironically, on the day the BIS issued the report, the “Om” token collapsed, taking $5.4 trillion in value with it!
Finally, our Bonus read is a great paper by OpenAI on how to identify and scale AI Use Cases. As the global experts in AI, they should know.
The paper is easy to read thanks to its striking layout, which effectively combines subtle graphics and text. Take a look; you won’t be disappointed.
Thanks once again for reading. I appreciate each and every one of you opening your inbox for me!
Rich
PS
Next week’s newsletter will be shorter than usual due to the Easter holiday.
PPS
Thanks for sharing with your friends! It’s a great way to say thanks.
The Blockchain Challenge: Private vs. Public!
Both are great but watch as banks push for private chains
A blockchain-based financial system is becoming more real every day, with asset tokenization and stablecoins poised to become the norm. But on what chains will they operate- permissioned or permissionless?
This is an ongoing battle, and the sides are clearly drawn: crypto aficionados demand permissionless or public chains, with banks railing against their inadequacies.
Read on to see why banks and exchanges have the upper hand…
AI Is Transformational Technology, But Be Wary Of The Hype
Believe in AI, but you're on your own in figuring out what is hype and what is not.
The “Centre for Future Generations” just produced the best report I’ve ever seen examining “AI Hype,” which acknowledges both AI’s transformative potential and the real presence of hype.
I regularly write about AI hype. When I do, I see it as adding value by throwing cold water on some of the more outlandish claims made by consultants and big tech.
See why you’re on your own figuring out AI hype……
G20 Falling Short On Slashing Fees On $250T In Transfers
Banks are doing a terrible job of cutting back on fees
Temenos examined the results of the G20’s payment roadmap and found that most cross-border transfers still fall short of the targets set for 2027, with banks making little to no progress.
When the G20 targets kick in, in 2027, cross-border payments will be worth $250 trillion. But as you can expect from the G20, the targets have no teeth.
Crypto and DeFi Reach "Critical Mass," TradFi Stability in Peril
The BIS sees a risk to TradFi from spillovers coming from DeFi and stablecoins.
No sooner does the BIS launch its assessment of crypto and DeFi’s impact on financial stability than the “OM” Token collapses, sending a $5.4 billion jolt to the crypto world and crashing its related blockchain for securitizing real-world assets.
Bonus Read
OpenAI: Discovering and Expanding AI Applications
OpenAI is clearly an AI expert, and this very graphical and legible report keeps it simple, making it a fabulous weekend read.
OpenAI suggests three basic principles to enabling and scaling AI:
1️⃣ AI should be led and encouraged by leadership.
2️⃣ Complex use cases can feel impressive, but often slow you down. Instead, empowering employees to find use cases that work best for them, and your company, is often a faster path to success.
3️⃣ Encouraging adoption with hackathons, use case workshops, and peer-led learning sessions is a catalyst for many of our customers.
Interestingly, in my book "Innovation Lab Excellence," I show how most hackathons are a total waste of time and an exercise in "innovation theater." OpenAI didn't get the message!
This is a fun read, easy to skim, and is suitable for everyone.
Hot Topics for Premium Subscribers only
Imagine having someone combing through thousands of articles, over 50 RSS feeds, and 25 meticulously crafted Google searches—all to handpick the absolute best reports, just for you.
Each week, I distill this ocean of information into five concise, high-value reports, sharing the most essential knowledge you need to stay ahead.
But that’s not all. I also collect additional exclusive, hard-to-find gems, which I put in the section below—all in PDF format with my brief expert commentary.
To download them, no corporate email is required, no searching, and no links to other places. With a paid subscription, these insights are just a click away.
Here’s what you’re missing out on this week in the Premium Subscriber-only section below:
Bridging the AI Gap: Online Seller Perceptions and Adoption Trends in Southeast Asia
Lazada looks at the use of AI in e-commerce from the seller’s point of view. I enjoyed this report as it showed how AI is coming to SE Asia.
IMF: AI Adoption and Inequality
The IMF looks at AI to see whether it has an impact on inequality. “Some argue Al will exacerbate economic disparities, while others suggest it could reduce inequality by primarily disrupting high-income jobs.”
AI Privacy Risks & Mitigations for Large Language Models (LLMs)
So everyone complains about LLM risks but what to do about them? Finally, a detailed answer with practical suggestions even if it’s not an easy read
And that’s just three of seven reports. You’re also missing the infamous Chart of the Day, which covers “Top 10 GenAI Use Cases.” I guarantee the No. 1 use isn’t what you think!
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