Yesterday, we organised our 4th Edition of the "Web3 CTO Roundtable", an exclusive event series hosted by Talent@Web3, where we gather curated Web3 CTOs and Tech Leads who are actively building, enabling or using DeFi, Payments and CBDC to discuss the technical challenges in this area. They also touched on the concept of the Purpose Bound Money (PBM) system and its potential to revolutionize financial transactions.
The group broke out into 2 small groups to discuss 2 topics:
Topic 1: "Leveraging Cryptocurrency for Real-Life Assets". Key Takeaways:
Leveraging Crypto Salaries for Wider Adoption: Participants emphasized the significance of introducing cryptocurrency to a broader audience and stressed the need for people to receive cryptocurrency as their primary asset, thereby obviating the requirement for conventional on-ramps. One of the most straightforward approaches discussed was the utilization of cryptocurrency for salary payments. This was considered a "low-hanging fruit" due to its potential to incentivize broader adoption.
Directing Cost Savings to Employees: The roundtable explored the feasibility of reallocating the cost savings achieved through cryptocurrency payments to employees as an additional salary benefit. The notion was to motivate employees to choose cryptocurrency salaries by offering them extra incentives. This aligns with the belief that current payment methods are frequently ineffective and expensive, resulting in unnecessary expenditures of traditional fiat currency.
The Innovative "Vampire Attack" Concept: The concept of the "Vampire Attack" was introduced as a strategy to expedite the adoption of cryptocurrency as a new financial system. This approach entailed modifying Point of Sale (POS) terminals to enable direct cryptocurrency transactions, bypassing traditional systems like Swift or Visa. With POS terminals recognizing crypto-based cards, transactions would take place natively on the blockchain, leading to reduced fees. This innovation not only benefits merchants but also provides advantages to buyers, promoting wider adoption of cryptocurrency payments.
Topic 2: “Reducing the cost and complexity of on-ramps”
Addressing Fee Structures: The group delved into the intricacies of reducing on-ramp costs, especially the fees associated with fee structure adjustments. Despite the decline in on-chain fees, challenges persist, particularly with edge cases where fees may soar to 1%, affecting exchanges and intermediaries.
Streamlining KYC Procedures: The conversation emphasized the importance of optimizing Know Your Customer (KYC) processes to lower on-ramp costs. Regulatory compliance and increased overheads linked to KYC requirements were acknowledged as obstacles. Participants recognized the need to simplify KYC complexities for cost-effective on-ramps.
Exploring PBM and CBDC Impact: The discussion explored the practical implications of Purpose Bound Money (PBM) and Central Bank Digital Currency (CBDC). Recognizing PBM's role in intra-blockchain transfers and nominal fees, participants moved beyond theory to practical considerations.
Psychological Barriers to Adoption: Participants highlighted the psychological aspect influencing user adoption, particularly when choosing between traditional currency and cryptocurrency. This psychological dimension plays a significant role in the decision-making process for on-ramp usage.
Democratizing Platform Access: The conversation concluded by emphasizing the importance of democratizing platform access. It aimed to ensure equal access not only for industry giants but also for individuals in the room. The goal is to create an inclusive environment where everyone can benefit from the user experience, fostering accessibility in the on-ramp realm.
In summary, the 4th Edition of the "Web3 CTO Roundtable" unearthed invaluable insights, from unlocking the potential of cryptocurrency salaries to simplifying on-ramps for a broader audience. These discussions chart the path for a more inclusive and accessible future within the realm of Web3 technologies, paving the way for innovative solutions and widespread adoption.
Talent@Web3 is a talent community that brings together Web3 talents through continuous learning, networking and job matching.
We also empower companies to identify and acquire top-tier talent, enabling them to supercharge their teams and drive growth in the ever-evolving Web3 landscape.