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tv   Made in Germany - New currencies -- old problems  Deutsche Welle  September 25, 2018 11:30pm-12:00am CEST

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lifestyle you're a. sixty minutes. story so that people of the world for t.w. on facebook and twitter to date and in touch follow us. could cryptocurrency is one day eradicate corruption or is the digital world of finance just raising new risks that's a topic that's made for made your business magazine i've been physical and today
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we're going to be looking at new currencies that a saddled with some old problems first we have to ask the question ah cryptocurrency is a bastion or a bubble because and strong to the scene as the first crypto currency it was created as a safe alternative to the crisis problem banking system mainstream investors and even lending is now toying with digital money that could ultimately put them out of business but is bitcoin here to stay. eight years ago with peter order turned to world of finance on its head. are these two pieces worth sixty three million dollars of course not in two thousand and ten the program alas no one is paid ten thousand times for it at that time only worth forty u.s. dollars nowadays this would make sixty three million u.s. dollars. today honey it says no one had any idea that transaction would go down in
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history as a milestone but this fateful first ever recorded transaction of it gone is what kick started the cryptocurrency boom. in two thousand and ten one bitcoin was worth less than one us cent in two thousand and thirteen it was worth one thousand dollars and in december two thousand and seventeen it jumped to almost twenty thousand dollars. because it was invented as an alternative to the prevailing cultural financial system a revolutionary way to conduct transactions without third party intervention no banks no central banks no government authorities like it so much rather as a consultant to advise us companies on creating their own crypto currency he also runs a group you're involved in for people interested in crypto currencies. and i ask him if it can and has lived up to its revolutionary promise. first it was fighting
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against the banks the existing financial systems if you like the banks had already screwed everybody over and we almost had like massive catastrophe but right now this is a new type of financial instrument a new monetary system gave us the potential to maybe create something new bitcoin is the original crypto currency and i think right now it's been fascinating about how the old world economy has been catching up how old world investors have been catching up because we've gone quite a long. that's a more of the beginnings of encrypted currencies into what we're seeing now the only way the crypto really goes well is by integrating with the traditional world. and there started out as an anarchist project that crypto currencies and chain are now mainstream big banks and investors have got involved. they have discovered you can also speculate with because. ninety six percent of all bitcoins belong to four percent of the current owners so just
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a few profit from sorry prices and risk losing their shirt the exchange rate is extremely volatile. some claim cryptocurrency going to become widespread and a regular means of payment. is a berlin startup that aims to promote exactly that bringing together the realms of old school money and new fangled crypto currency with a partner bank that is building an online bank account that lets you buy and sell big con and make and receive payments. we can't trust governments to control our monetary policy because they obviously made a lot of mistakes. we consider ourselves. as a bridge between the old world and the new world so we don't believe in a world where your only have money or only have cryptocurrency money we believe in a world where you're going to have both of those but if we look at the current trends we know that block training cryptocurrency is going to be everywhere i don't think it's going to be so tangible. like now every single day our days are
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different because we're using smart phones etc i think well i'm closer will be as pervasive but it won't be as obvious. world. realize that the objective remains the same to make money as much as possible. if something is high in the right way you can always find someone willing to buy it back in twenty thirty. in a program i decided to set up a crypto currency just for the fun of it the dog logo he chose for his joke currency duggie coins was based on a popular main thing is investors didn't consider it a joke they don't want money into it and before long the duggy coins were capitalized to the tune of hundreds of millions of dollars well because it may be the biggest digital currency by market capitalization but it's not the only one there over sixteen hundred competitors you cryptocurrency ziv been all the rage for
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the last couple of years and creating a name for them can be fun as we've heard at the moment you can invest in products like cannabis coin or snake eyes is even a trump coin and a putin coin as well is a breakdown of how crypto currency is work. what is a crypto currency. kitty loves the internet and on a. narrow not real money but crypto assets which he manages with the help of a smartphone app as do some twenty six million others around the world kitty stores her cryptocurrency in what's called a wallet it's anonymous and encrypted she can use her digital currency to buy pretty much anything on line a growing number of businesses accept these currencies for example kitty could book a hotel in moscow the payment process takes ten minutes in comparison
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a standard international bank transfer would take up to four days and it costs money the corresponding banks exchange rates and fees would make a transfer of two hundred fifty euros twenty eight euros more expensive whereas crypto currency is transferred wallet to wallet and incurs almost no extra costs. there is no bank involved no state no central bank and no privacy concerns. crypto currency isn't logged in any central location every transaction is replicated on millions of computers and recorded in a block chain that can be accessed by all users but the transactions are anonymous that means kitty could be buying drugs or weapons without the police knowing that's been damaging to crypto currencies image they're also security concerns in aug twenty sixth hackers stole fifty eight million euros worth of bitcoins causing the price to plunge twenty percent there are now almost two thousand crypto currencies
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and a growing number of coins are in circulation the market capitalization is currently about one hundred seventy billion euros. and that number is growing and so are those security concerns for crypto currency holders. news of hacks every few weeks and whole countries are now creating their own digital currencies take venezuela and the petro it was designed by the country's president nicolas maduro to get around the latest u.s. sanctions put in place by this guy at the moment a crypto currencies success depends a lot on how easily it can be converted into standard currencies whatever the case traditional lenders and central bankers are increasingly worried about their relevance in the digital future. the bank for international settlements in basel is the bank for central banks it
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promotes international monetary co-operation and carries out research and policy analysis its general manager i've listed in kirsten's is dead set against crypto currency. because for me to also have a future. they will replace it quite separately because they're more efficient faster more transparent and safer. or has made millions with bitcoins and distributed ledger technology which he says has revolutionary potential we have them both a number of questions starting with will cryptocurrency soon rule the world. you think you have your money in an account you are respecting put up account to preserve its value. and sixty million dollars from that we can disappear. to manipulation wherever humans and technology are at work in the
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regular financial system and in crypto currency online banking a much more vulnerable crypto wallets if that managed right. person says banks are liable for losses incurred through fraud and that in the world of crypto currency there's no safety net the most important usurps or so you were currencies are those who are associated with the illegal trait for example laundering money is trait. and so on and so forth it's a payment system that these difficult. and carsten says that because there's no regulation of digital currencies crookery can flourish. you can do crooked things as easily with a crypto currency as with real money i see crypto currency as a tool you can use a hammer to repair the roof or build a kennel or to bash someone on the head. one telling point of crypto currency has been the speed of transactions but payment times have slowed to about ten
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minutes because of the surging volume the computers involved need more time to process transfers i mean basically used in the infrastructure of these pro-choice by investors now for them to make money just from these necessary as there is just shown they can charge try your fees inductees really what these need it to have the system work doesn't cannot cut these are teething problems they're an issue to have to address and solve these problems i'm not convinced cryptocurrency is are here to stay this technology is very new and i'm sure that the problems we have today will soon be solved. that. the dollar and the euro eventually be replaced by crypto currency. i don't think that will replace a payment system based on the core in c. really. or complies with the three elements of money which is to be sorely
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store of value do we get medium of change and do we. account. too soon to say that everything that's been built up over thousands of years is on its way out but it does look like we are heading in that direction. both favor regulation of crypto currency. to make the more attractive carsten in order to combat the criminals. well turning away from criminals and speculators maybe there are other people who might find block chain based currencies attractive what about communities creating new money for social good using crypto currencies a new digital cohen is banking on the idea that people can profit from voluntarily solving problems in the world around them. the existing economic system is
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creating environmental pollution poverty and just consider the distribution of what it is a disaster so obviously we need a new economic system based on democratic principles dorrian the community looks for problems and when we find one the solution will be financed and financing the solution creates currency. it's about education and expanding skills it's about diseases and water and about providing care for all areas the dory i'm supports just about any solution for a problem that makes a difference in the world we reward new ideas. and. sharp elbows in strength is what it takes to win in american football and above all team spirit and the desire to achieve something for the greater good
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. that also applies to the coaches they all work for the damage that diamonds on a voluntary basis. by i have been coaching young people on the football field for years now sport has kept some of them off the streets and helped prevent them from potentially slipping into a life of crime has unpaid dedication and darmstadt has been rewarded in the form of this cannot. it's a volunteer award card with it you can visit museums or go to the theater it's a way of acknowledging what people do and giving them something back. the concept gave our thinking good rewarding people for voluntary work in the community to help make the world a better place that's why four years ago he teamed up with some entrepreneurs including andrea slang to create a social currency it rewards people who solve problems sustainably in society in
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the environment or in training and education they named their project doggie on it's a foundation using blogger chain technology worldwide to assess the value of an idea of the problem in your general problems young people face that can be reduced through voluntary activities like these here there's value in that in fact it can be displayed in a car then the community can say we like this and we want to back it therefore we'll give you so many impact to support it improved doria my can trade the social impact tokens into a tradable cryptocurrency the sobs. themselves. the project even reaches places like the jungle of papua new guinea the idea of a social cryptocurrency has a lot of potential in developing countries. that's why the founders of dorothy i'm have come to port moresby the capital city of papua new guinea to introduce that concept at a start up conference. for the past two years and they are slang in co-found are
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hard to attack as sorie have attended the chain of events worldwide germany up interest in sustainable investments. everybody war party is able to be a part of this new ecosystem and this ecosystem is just rewarding sustainable behavior. clean drinking water for example is a problem in many countries today it's possible to purify water but the technology is often an affordable for poor regions. in germany a small company produces this high tech ceramic it can filter water and clean out pollutants the founders have financed the water purification container in a pilot project a village in bangladesh wants to use it to get clean drinking water. as it's no longer about a bank issuing a loan or an aid organization working in africa today
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a global community can solve problems we can decide together which solution is financed where and how it's financed. the name of the new cryptocurrency spelt soaps derives from social business the two entrepreneurs have been able to win over support from some influential people such as nobel prize winner mohammed yunus and the granddaughter of nelson mandela but can block change technology really ensure that no subsequence are produced before a problem is actually solved because an impact talk only with this impact on my blog which is managed by the global community can i create sobs coins i always need an impact a solution to create a subsequent so it's not possible for just anyone to create sobs callings with money sobs don't fall from the sky they'll only be a new saw a new medium of exchange when somebody has created a solution and is making a real contribution. whether the idea actually works or not will depend on
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how many people companies or countries want to reward social commitment and volunteering. and they will need to have confidence in the new cryptocurrency soaps and accept it as a means of exchange. of those other modes of the. marketing front of what's clear is that some of the world's most prominent banks are scrambling to catch the cryptocurrency wave among them german based. it's hired experts in the area to try to figure out how to retain business in a world where it would no longer act as a middleman like ali went to meet one of them in london. um yeah bedford is known as miss crypto she works in london for dacha bank kind of as its guide to the future scouting out emerging technologies.
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chain has the potential to give back to customers control of their data she says blushing creates transparency it's a form of distributed legit technology thank you for looking into ways it can be deployed at the bank. as lurch from crisis to crisis for years and daily needs to win back trust and business. we need to do better demonstrate we're looking ahead attract customers and focus on serving them. than. i would be banging it out in the bank is like a big ship that has to change direction. of course there's an agile little tug in front and that's us we test new things. and if they prove their worth they'll be implemented in the rest of the bank. crypto and her team are often out and about exploring what it is the bank's customers really need she also confers a lot with dacha bank's london innovation lab. it's headed by john pearce and he
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tells us how block change can make aspects of banking more efficient they can be used to create smarter contracts a cobol program that ensures all terms of a contract awful filled without any third party involvement. but the technology allows is the immutability of a contract so that you know that it hasn't been tampered with and that you know that what it is executing was pre-agreed with the relevant counter parties that's what it actually offers. bedford knows that block change is hard to understand for the public at large it's a veritable mystery that's going to change there's no single block chain. but lots of different applications that function in different ways i deal with this stuff every day but i still spend lots of time at least two hours daily reading white papers to keep track of the various trends within the world of blog change she says
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it's not going to revolutionize things overnight but it is driving a lasting change locks in a line about chain is not going to transform our lives by itself but in combination with artificial intelligence and the internet of things it will in twenty years time our lives will be completely different instead of wearing a watch we might all have an implant and be able to pay for everything with it data will be secure because they'll be stored by blocked chains and the government won't be able to access them. perhaps we can do without the implants but the new bedford for one is convinced that people will be better able to assert their right to data privacy thanks to block change she says it's more secure than any other technology to date now she just needs to convince the bosses to increase the budget for her team as guide moment currently the focus is on solving the problems we already have but most of the banks executives appreciate that we have to think ten or twenty years ahead what is banking going to look like and then what issues will our
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clients be facing we should start preparing to solve problems we might not even know about yet. before on your bed for tackles the future of finance she's going to take a break and have a baby but after that she'll resume her work reengineering the world of packing. it probably still have a question or two about how blocked technology actually works it's not easy to explain as we heard in that report but in simple terms it runs on a kind of distributed database that spread out over thousands of servers all over the planet that means you can bury crypto currencies in your backyard or hide them in a coffee catch up on the top shelf making them more difficult to steal at least in theory and that characteristic could put a special unit at germany's central bank out of business one day.
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this is a fairly tricky case someone had a wallet in an oven and then forgot about it that was my first goal to get to the bills without cutting them to pieces. contest suggs specializes in burnt money. his task here is to piece together the charred remnants to find out how much money was in the wallet the owner says it was two hundred twenty euros. for the in which even in a bun condition there has to be in all of them fifty percent left for us to be able to reimburse it. he and his fourteen fellow specialists examine about thirty million euros a year in damage cash there's no charge for reimbursement even in complicated cases is a bug one hundred days bank notes have fused with a wallet they've melted but i have to make sure the right hand sections are still there only then can we reimburse the. pets works in the analysis
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center of the bundesbank germany central bank these damaged coins were taken out of circulation no refund no exchange. these rotted bank notes were buried in the garden the owner wanted to keep them safe from thieves he'll get his money's worth back old darts mark notes can also be exchanged for your a substitution it's just that. martin weber's plays the role of detective for the department he's out to identify counterfeit notes. and. he can often tell right away which workshop produced a fake bill frenzel from the counterfeit notes often feel smoother sic bank note paper is rough because it's printed on noncommercial paper on pure cotton wool and you can feel the difference. tell the best forgeries from your original in its technical help. only the counterfeits glow
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under ultraviolet light. and the printing errors are revealed under magnification. cool place now from carrot so he has to deal with scoundrels of a different kind. mice have looted a hiding place in one customer's attic that's really gotten more is that what's hard about cases involving mice is that they nor out the fibers to use as nesting material and carry it off somewhere with a cog. but in this case the mouse was not to greet the cats so this confident he can piece together more than half of the each banknote and reimburse the customer oh sure that'll make all of you with your not stuffed under your mattress to sleep a little better at night but something to say or if you want to get in touch then via twitter or tweet the team or if you'd like to see any of those reports again
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you can find them on our web site that's it for us here on main and see you next time i watch. the fish. fish. fish. fish. fish. fish. play.
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