Blockchain , Innovation , Regulation Olivia Goldschmidt Alberto Echegaray Guevara is the founder of Pascal Capital and adviser to the IDB, the UIF and the OECD. He has more than 15 years of experience in project financing, with a focus on the areas of health, infrastructure and energy.
Currently, he advises private entities and governments on technology and regulation of digital assets, including their participation in the G20 Task Force. OECD and Financial Intelligence Units. Alberto was founder of the company I-LIFT Contour threads, a company specialized in smart medical sutures. In 2012, the company and its operation in 18 countries was acquired by Quill Medical.
How are blockchain patents developing in the world?
ALBERTO ECHEGARY: The blockchain systems have had a very powerful development, especially in developed countries, China is number one. This year more than 70% of blockchain patents are Chinese, and by the year 2030 in blockchain combined with artificial intelligence, China will be number one as well.
In China, bitcoin is as forbidden as possible. It is a “bitcoin no, blockchain yes.”
ALBERTO ECHEGARY: There are two parts of this story. The world is divided into two: 52% live under authoritarian regimes and 48% in democracy. It is very crazy what happens but in that 52% enters China and has developed a very interesting blockchain, which is known as cloud surveillance, or a cloud of security .
China created the first strong Bitcoin fork, which is Bitcoin Cash. Not only does Bitcoin go bankrupt, and it has a predominance of miners in the world, but it uses bitcoin’s branding, which is its best strength to create a second currency (Bitcoin Cash).
China has a very important force in how bitcoin is produced nowadays. The proof of work system works with miners. We see how important it is, the origin of how bitcoin is produced today, the proof of work, and everyone in that environment knows companies as bitmain that is about to go public. and are pioneers in the development to create bitcoin.
That is, they create the hardware that miners use to emit or mine bitcoin What happens if that hardware starts to mine only Bitcoin Cash? It’s a good question, and they let us mine bitcoin. Recall that Bitmain has a huge percentage of the market. There is not a mining company in the world that does not have S9. This is not futurology, if one goes to Beijing or Shanghai, the facial recognition system and next to a big data system, allows today you can see in China posters with the faces of people who have stopped paying, posters with people who cross the street badly and generates a scoring system, where a document of the Chinese party that, in the same way that in the United States there is a scoring for debts or stop paying, scoring for behavior of the people within the system.
Applications like WeChat, which is like WhatsApp but much more evolved, concentrate from payments to a hotel, reservations in restaurants, or the order of a transport. It is a collection of vital information that many philosophers call the digital dictatorship. This system is operational in China. WeChat has a billion mobile downloads. In China, most companies are controlled by the State, and this data collection allows them to scoring citizens.
Those who are against, which has happened with many journalists, have a very low score which is difficult to leave. The most interesting thing is that the WeChat and this system is being exported. What would happen if Argentina or Colombian democracy, or in Peru would ask you if you would like to know if there is a person in the area of your house who could potentially be a criminal? ” Someone who can steal or kill someone. Most people in Latin America would say yes because they want to be protected. Without going any further, a closed neighborhood fulfills this function It is the first fence but it has nothing to do with the violation of human rights, which is another part. Just as they exported low-cost motorcycles, or thousands of Chinese products, to Latin America they could perfectly export this model.
We have a channel between Argentina and China that connects us.
ALBERTO ECHEGARY: Yes, 60% of what Argentina exports goes to China. Who sends, the buyer or the seller? I think the buyer. We have a space station that is Chinese territory inside our operating territory, and it is a satellite station, that is, it has the potential to launch satellites. There are around 2,000 satellites around the earth, potentially in the next ten years they will launch 20,000, it is the race that is coming. The satellites are in the stadium of what was the personal computer in the eighties. The war is there, you can turn off any kind of communication. Already Donald Trump launched the space defense system. The Chinese are thinking how they put a station on the moon, and in three years we have people going to Mars .
It reminds me of the Black Mirror series (correction: it’s not HBO)
ALBERTO ECHEGARY : Black Mirror was left behind. Related to cryptocurrencies, I think that in the future they will all be traceable. Let’s know where they come from, where they are going. Privacy is what hacks technology. It is the panopticon strategy, the construction system of prisons with a tower in the middle that made the imprisoned feel observed all the time. Today the new panopticon is the security system of cameras, which are already installed, and with putting a software the game starts. Now, with the money, the bitcoin today for the reasons like money laundering, or criminality, it can be traced and they have done it, but we have to think how to make a system of checks and balances to see where we give our freedom.
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