One of the pioneers of cryptocurrency, Jed McCaleb, has said that he sees that industry’s underlying technology will eventually change how many financial transactions are made in the not so distant future. He founded Mt. Gox which was the first place anyone could trade bitcoin before moving on to other ventures. He said this tech, blockchain, would change how banking is done and how stocks are traded.
Today, Jed McCaleb works at Stellar Development Foundation, another cryptocurrency firm he co-founded and for which he is the chief technology officer. He started this organization in 2014 and the goal was to help financial firms lower the costs of their customers. Right now it is too expensive to provide banking services to about 2 billion people around the world. By lowering the costs using the Stellar network these people will gain access to the global financial industry and everything that offers.
Jed McCaleb says that it’s all but inevitable that there will be a universal payments network in place which uses blockchain as the advantages are too high. Blockchain creates a public ledger, he says, which everyone can see and which nobody can go in and change without good cause. Jed McCaleb says that banks using the technology will allow their customers to use the currencies they are very familiar with such as euros, the yen, and dollars among other government-backed currencies.
As for stock trading, Jed McCaleb says that there are already startup tech companies at work who are using blockchain to facilitate people to buy and sell stocks. He thinks that all equity will be tokenized before too long. He said because the load would be too great for any one centrally controlled exchange to handle all the traffic he expects this will take the form of a decentralized platform.
One of the big problems with bitcoin he says is that it is too slow to be used in the real world which reduces its usefulness. Jed McCaleb says that his cryptocurrency, Stellar, can process a transaction in just seconds compared to several minutes or more for a bitcoin transaction. He is working to speed this up even faster over time.
Here’s an additional reading about Jed McCaleb and his cryptocurrency: https://en.bitcoin.it/wiki/Jed_McCaleb