Dan Schatt is a man with a rich history in the financial sector after having worked as a banker at Citibank in Senegal, as a Celent analyst or as an executive at PayPal. But not only ! He is also a man who saw the country, he was a Peace Corps volunteer in Romania, in addition to his experiences in Africa.
He also co-founded Cred – a decentralized lending and borrowing platform – with other PayPal veterans, after – among other reasons – in view of the problems of access to capital encountered by locals in remote regions of Transylvania.
In an interview with Cointelegraph, Dan Schatt talks about Cred, the tokenization of financial assets. But how do you speak cryptos without saying a few words about Bitcoin (BTC)?
Cred, his Credo and the Cryptos: the 3Cs
The platform co-founded by Dan Schatt allowed an American politician to buy cannabis with Bitcoin Cash ((BCH). The aim of this politician was not to make a trip to Wonderland but, above all, to show how cryptos could make it possible to collect taxes more effectively – the legalization of cannabis in theState of california having ultimately not increased tax revenue to the level hoped for by local politicians, given the shortcomings of the classic collection system for this type of product.
But Cred, it is above all a decentralized lending and borrowing platform, in partnership with other platforms like Bitcoin.com, Uphold, Bitbuy and TrueUSD. Cred allows individuals to collect interest on their crypto assets and borrow money using their cryptos as collateral.
In theory, thanks to cryptocurrencies, Cred This makes people who traditionally have no access to the capital offered by banks “bankable”.
The platform of Schatt benefits – unlike banks :
- The universality of the value of cryptos : a Bitcoin will always be a Bitcoin everywhere in the world;
- The international reach of the blockchain : your credit line will not be reset if you change banks and countries;
- Less transaction frictions thanks to blockchain : a transfer far faster than those operated by banks using SWIFT;
- More favorable deposit remuneration : annual interest income on deposits, up to 10%, 5 to 10 times more than those offered by most banks.
When asked about managing volatility risks in Bitcoin, which is still the main “raw material” of Cred, the answer of Schatt Is simple : Cred so many futures contracts BTC, a volume of negotiation that allows them to buy Bitcoin whatever the price.
But Dan Schatt was also “invited” by Cointelegraph, talking about crypto issues.
The co-founder of Cred raised 2 main points which seem to him currently problematic in the cryptosphere:
The interoperability problem with a ” Ethereum [qui] don’t talk to Bitcoin who doesn’t speak to EOS who doesn’t speak to XRP “;
The problem of stablecoins who arouse reluctance fromUncle Sam since the stablecoin is not backed only by the dollar, thereby risking to undermine the hegemony of the greenback.
And this famous capitalization of Bitcoin at a few trillion dollars?
From 2015, Schatt predicted that all financial assets would be digitized and then tokenized. He takes the example of gold most often held in the form ofAND F ((Exchange-Traded Fund) than gold bars. The Takasbank has recently succeeded in tokenizing gold (and it will be recalled that our French friends from VeraOne are particularly advanced on the issue).
Tokenization makes it possible to divide a digital asset into several parts. A real estate company in Swiss so recently tokenized a building thus making real estate investment accessible even to small budgets.
Schatt think with Bitcoin, “We could go even further. Someone in Ethiopia with Internet access may one day be able to buy Apple shares for a penny. “
It is this tokenization of monolithic assets and their splitting so that the maximum number of people can profit from them, which could drive the Bitcoin market cap from 200 billion to 200 trillion dollars, according to Schatt.
Another “expert interview” which highlights that Bitcoin is really nothing like a classic currency. BTC is rather an asset, capable of creating other asset classes. If you believe Schatt, Bitcoin is also the financial product that could ultimately end – or drastically decrease – the financial exclusion of millions of people in several countries still experiencing economic development problems.
Litecoin, welcome in the Silver Age