Okay on to the top stories. First up three arrows capital just defaulted on a loan worth more than 600 million dollars. The hedge fund failed to make a payment on the more than 15 000 bitcoin and 350 million dollars in usdc lent by crypto brokerage voyager digital voyager said it would take the necessary steps to recover those funds. The companys ceo said it was working to strengthen its own balance sheet in the wake of the crypto crash. Next, the downturn on digital assets is also hitting crypto focused stocks, goldman sachs warrant investors to sell shares of coinbase, mainly because of the steep drop off and trading activity for digital assets. The investment bank said that declining investor interest in crypto means coinbase could lose significant revenue. In fact, goldman says that by the end of 2022, coinbases revenue could fall 61 from a year prior and drag the companys stock down with it and speaking of falling prices. Morgan stanley says ethereums: merge could cause demand for graphics cards to plummet, ethereums transition to proof of stake means miners wont need much of the processing power that they currently have theyll stop buying new gpus and potentially sell the ones they already have now. Prices for graphics cards had surged in recent years as more miners came online, but morgan stanley says that sudden drop in demand for these components could lead to a correction in prices for gpus. Okay, for our main story. Today, cnbc is at the aspen ideas festival in colorado.

We spoke to brian, brooks of bit fury and brooks and whistle of ripple. They came together to discuss the use case for crypto and importantly, whether or not the technology is here to stay. They also addressed the recent crypto crash and what it means for the technology, because it has been a very difficult couple of months across the sector and thats, obviously not just in the us, but from a global perspective as well as well talk about on this panel. One of the things that brian island both talk about is this is not the first time this has happened in this industry. This has been a reasonably regular occurrence over the life of digital assets and crypto. The last decade plus, and one of the elements that i think weve learned over time, is that winter time is actually a fabulous time to build businesses and to really define use cases for digital assets and crypto. And i think in some ways, uh take a little bit of the fluff out and some of the business models that may not have a long term nature to them as well. So it is deep were not in the consumer facing trading business so were not in the business of making calls on one coin versus the other. Im certainly not going to do that today, but we do gather here at a very interesting time and pivot point for the industry. The panel also addressed the infrastructure and dismissed the idea that crypto is here to replace the us dollar outright.

You know the the biggest issue that i always try and focus on is cryptocurrencies are really not about currency, and the biggest misunderstanding of this whole discussion is the belief that, if crypto is not doing a great job of replacing the us dollar, i think cryptos, failing In its mission and what i, what i think well talk about a little bit today is the idea that most of crypto is about replacing the centralized banking system with networks that allow user control versus bank ceo control. The crypto assets that have prices are more like internet stocks, its more like you bet on google, if you think theres going to be high internet traffic and you short, google, if you think people are going to go back to the post office right but its not That ethereum or ripple or anything else, is trying to replace the us dollar its trying to replace a system of transmitting value and well talk a lot more about that. So for me, the prices are not that relevant. Any more than googles volatility is, and in the early days of google, that was super. Volatile u.s regulation was, of course, a topic of discussion as well and and whistle pointed out that regulation and which agency enforces. It really depends on the use case for the cryptocurrency. I think one of the key things in talking to washington or singapore or dubai or the swiss regulators is drilling down exactly what each of these use cases are for and what they do.

Importantly for citizens or their constituents in that country – and i do think one point thats very clear – is weve talked only about three or four tokens here we may get down the long tail a couple more, but the reality is that youre not going to spend a Lot of time today discussing some of these more esoteric cryptos that have come and gone for good reason, because the utility use case wasnt there or may not be there. They may be solutions looking for a problem which you have a lot of in this industry, but i do think that this notion of whether or not stored, value or building on ethereum, as relates to financial services or anything around nfts, which i owes a topic later At aspen ideas or if youre, really going after this movement of value across borders, which happens to be the one issue that that ripple has been after from the beginning. That is actually a real use case, and governments will sit up and listen because that matters, then there are the stable coins, which are particular concern for lawmakers. After the collapse of terror, usd stable coins are actually the tip of the spear on crypto regulation and its the one area where i think there is weirdly a really strong bipartisan consensus. I mean theres not a lot of that in the world today, so man bipartisan on consensus on anything, is a good thing. So so this gets to brookss point about about disclosure.

When i was a controller, i signed the first regulatory guidance that defined what a stablecoin was that would be allowed inside the u.s banking system, and what i said was that a stablecoin to be in the banking system has to have three features: okay, first, it has To be backed by risk free assets, meaning it cannot be backed by junk bonds, long dated corporate securities or whatever you know. I used to joke that. One of the one of the popular stable coin projects was backed by 68 bank deposits, 12, partially hydrogenated vegetable oil and a set of other things right, thats, not a stable coin. It has to be backed by risk free assets, meaning insured bank deposits and short term treasuries, and nothing else. Second, it had to be redeemable on demand and at par. So if you meet those three conditions – in other words, if you really are a travelers check except youre, operating under the internet, youre youre a stable coin, and that is what secretary yellen has basically figured out. I think in in the statements that the treasury department and others have made about stable coins today, so i think thats going to be a good thing. Why do you care, though elon thats? The more interesting thing you should care, because in the future, stable coins will become what people think of bank deposits today and the difference will be especially for lower income, americans and people. These will be bank deposits that dont have a minimum balance fee.

Dont have a monthly maintenance fee, dont have a transaction fee.

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