 So, my name is Jerry Chan, I work at SBI Bits and I came from Wall Street, so don't throw tomatoes at me, but technology side. I've worked in Goldman and JP Morgan for most of my career for over 15 years here in Tokyo and mostly foreign exchange trading systems technologies and risk management systems, so front office. So, I deal with markets a lot and deal with traders a lot and I know how, I got a little bit of an idea, I asked most of it being from technology. And today we're going to talk a little bit about how we can get Bitcoin to be the greatest cash in the world. And so I guess the first thing is, I'm sorry, I apologize, I'm the chief digital assets solutions of our department and pretty much that effectively means I'm kind of like the chief Bitcoin officer which is the joke in the office because I'm always the one talking about Bitcoin more than, but we also, you know, blockchain technology as well. Now let's talk about cash in the world. So what is, cash is all about medium of exchange, right? Because cash is not necessarily supposed to be store value first and foremost. It needs to be a medium of exchange because that's what cash is, it's supposed to be like a currency, it's supposed to flow and what drives exchange trade, right? So let's talk a little bit about first, you know, this new world which we want Bitcoin to be the best cash in. What is this new world? First, we're going to have to talk a little bit about the old world where we kind of came not old but the near past world which is fintech, the whole notion of fintech, right? First off, the invention of cryptocurrencies is kind of basically opened up for this new age of discovery, this new whole new industry and now we have this new world to sort of discover. It's pretty much driven by the notion of growth and expansion. We have to grow very, very quickly. It's very much like the times when the Colonials came over to the new world and discovered America. It was like, wow, this whole new place. We can't even fathom all the things we can do here. There's gold, there's silver, there's mangoes and wood and all this kind of stuff. So this is the new work we're going to embark in. And first off, talking about back to what's fintech 1.0 is pretty much the onset of e-commerce. So if you remember, most of you I think should be old enough to remember, back when banks just ran their own systems. Every company just ran their proprietary systems. And the internet was just some geeky thing that people didn't even call it the web back then but they just went online and they shared some ideas. And that was just like a geeky tool. But fintech 1.0 is when all those systems were, these corporate systems started moving on board to the internet and then opening up companies on the internet. And these companies were driven by the technologies, these whole infrastructure plays, all these companies that do these kind of things today, these foundational technologies evolved because of fintech 1.0, right, or e-commerce. And then companies that you all know evolved to become the giants, players of the industry. And now they're probably, you know, they're sitting right up there with almost as banks. I mean with Google, probably bigger than most banks, right. Although Google's not a fintech, it's just tech, but you know, Amazon, et cetera. And then somewhere along the way in, you know, 2009, is that a little too high on the screen? Are you gonna read it? This white paper drops into the community and then in comes this thing called Bitcoin and blockchain with it. And then it kind of basically makes everything sort of have to be rethought, right. And so this is fintech 2.0. That's our chairman, Yoshitaka Kitao-san. And his, in a recent annual report, he basically coined the term fintech 2.0 as an ecosystem which is driven with innovative technologies based on blockchain, right. So this is, we're taking a very, very huge sort of a drive towards fintech 2.0. But enough of the sales pitch. Just joking. No, this is, you can see we have a lot of like, we actually are quite proud that we've invested in more blockchain companies than even Google. So I'm not gonna bore you with that slide. Okay, so, all right. I like to talk in terms of images. So I talked about fintech 1.0, where we were, fintech 2.0, where we want to go and in this new world where cash is gonna be dominant, electronic digital cash. So let's talk visually in terms of a game. You guys, any gamers in the room? Raise your hands. All right, see this is, thank you very much. This is the first technical conference they let me speak in. I'm no longer technical, I used to write a lot of code, I don't do that anymore. I feel good that there are some gamers in here and I think this sort of, this presentation will speak a lot to you. So let's embark upon this brave new world. First thing we have to do is map our way through it, right. We have to identify the territories, the components of this new industry that we have to go through and basically explore and build businesses in. And it's very much like, I'm not comparing Satoshi Nakamoto to Columbus, but maybe that's just your subconscious thing going into there. But let's talk in terms of territories and like a land grab, right? So what's the first component territory that we need to identify in this new world, mining, right? So mining is the production of the cryptocurrencies, right? And with the gamers in here, you, yeah, yeah, yeah, geek. Yes, this has come from settlers of Katan. I'm old enough to know that it was called settlers of Katan, not like just Katan and all these cool millennials call it. And yeah, that's mining, I don't need to explain to you mining. And if I did, then there are probably better, more qualified people here in this conference to explain to you about mining. Next thing, retail commerce. This is the point of sale. This is like the mom and pop shops taking Bitcoin. This is like me going over to two dogs over here in Roppongi and buying like a craft beer with Bitcoin. So the retail commerce is very important part of this new economy, this new cash economy. Next, exchanges and brokerages. Notice that they are two different tiles, but they came in at the same time. They came in at the same time because everybody today thinks they're the same thing, but trust me, they're not. Coming from financial industry, exchanges are not the same as brokerages. What you think of as Coinbase is like a vertical exchange or what they call is like a one stop shop exchange. They are the brokers, they are the exchange. And guess what, they're also your clearinghouse. Which means they do your KYC, they take care of your clients. They let who to join their platform or not. They actually do the matchmaking, which is the exchange. And then they actually clear you. Basically, they settle you. They do withdrawals and deposits. Normally, that's not all the same company in financial space. Next, remittance is very often talked about back in 2013, 2014. And it is a very big industry. It's basically the moving of money between countries. Normally, migrant workers from a developing country would send their best and brightest to first world countries to make a lot of money, send it back home. That's a very large part of the GDP. Philippines, I think, takes in upwards of $20 billion a year GDP from countries like Japan and the United States and other places. So that's a very big business, but the reason why it hasn't developed yet is because it's very highly regulated, for good reasons, right? Next thing, settlement and clearing. Settlement and clearing is the third piece of the puzzle, which nobody's actually done on its own yet. But that's because you need a clearing house, centralized clearing house. And I know everybody just sort of freaks out when they say centralized. But some things are better centralized, namely risk management. Doesn't have to be, doesn't mean there has to be only one. It just means that there has to be clearing houses. There could be more than one, maybe only the good ones survive. But that is very important because without clearing, you won't be able to pool all the risk of all the exchanges and brokerages together. So that a bankruptcy of one company doesn't take down all the other ones. Next, ICOs, this is Bitcoin space. So I guess a lot of people here are kind of 50-50 on ICOs. But actually the ICOs are actually capital markets. In bankers speak or in financial speak, ICOs is a way of raising money. It's an innovative way of raising money, it's a new one. But it effectively is all ways of just raising money. It's all just Kickstarter on steroids or Indiegogo. Because it's whether you issue a token for usage or whether you issue a token for pseudo equity or some sort of payback dividends thing. It effectively is just give me money so I can write my project before I actually write my project. Because I'm really cool and have a white paper. So that's ICOs. But it is a valid territory of this new world. Next, if you've tried to run a business in Bitcoin, you've probably realized there's not many people doing insurance. Sorry, the slide is hard to see because it's a red clay brick tile. But insurance companies willing to insure your business, if you're doing Bitcoin, are very far and few in between. And that makes running a large business like an exchange very difficult because you're wearing a lot of risk. Also the fact that there's no settlement clearing houses means you take all the risk, it's even worse for you. So this is a very big business that will be explored going in the future. Next, when you have insurance and when you have capital markets, you're definitely gonna have derivatives. Sorry guys, derivatives did destroy the world once. But it is an inevitable financial sort of component of the world. Because whenever you have risk, ICOs or mining, you're gonna need people to hedge the risk because you're gonna want to offload that risk to someone who wants to take it, right? Otherwise you end up running a business that could go boom and you don't have a business anymore the next day, right? Now, there's a big open hole in the middle. Does anybody, can anybody guess what that is? Yes? No. No, banking, no banking, your own bank, cash, kind of. Actually, I kind of heckled you, but he was the closest. It's kind of banking, but really, because banking is kind of a bad word. But what banking really is, because banking is a lot of things these days. And the banking that destroyed the, made the financial crisis of 2006 to 2008 was not the banking what true banking should be. True banking should be custody, right? Basically they just hold your money safe for you, right? Because you can't be bothered to do it yourself. How many custody plays are there in Bitcoin space? Not very many, Bitcoin goes one, but if you're an institution and you need to park $100 million, where do you do with it? Do you trust it to your, your treasurer? You could, but I don't recommend that. Do you trust it to a web wallet? Of course not. Do you even trust it to a wallet which is open source, which is installed in a machine? Still, probably a really bad idea. I mean, you do need custody in the pure sense of pure banking, like back in the Medici ages when bankers just basically put your gold in a vault. We need that kind of, we need that institution. Because obviously you're not gonna be able to run a very large business securely without it. So, wait, I think one thing's missing this picture. This is kind of like the world of crypto and all its components. But I think one thing's missing, and there we go. We have bad actors, and right now bad actors generally hang out in the exchange territory for obvious reasons because everything's off chain and they can take your money. So we'll talk about how now, now that we have the whole picture. Sorry, Mark, I know you're, I know you're clean now. So, but he's getting more popular now because of the whole fiasco than he ever was. So, I think he enjoys it. Let's talk about how we map our way through this territory to global cash, all right? So first things first, first thing that inevitably evolves is exchanges, right? Because I mean, I technically retail commerce kind of started off, but I can't keep track of all the little mom and pop shops which started accepting bitcoins back in 2012. So the first real businesses that came online were exchanges and brokerages, right in the middle, right? Because they came together because there were no exchange onlys. There wasn't a NASDAQ which only did matchmaking, so of course you got to do both. Next thing that came along was mining, right? I mean, big like institutional mining. And of course there were miners before institutions. I mean, there were like the garage shops, but I think very recently we're seeing more and more large companies getting the mining, right? Next up, if you build your roads towards the next junction. Right, yay, two victory points for those of you keeping track. Five long, five contiguous roads, two victory points. All right, the next junction is the insurance custodial and derivatives, right? Futures and derivatives, right? And I'll talk more about this now very shortly. But this is the next thing that's going to be developed this year, right? But it really is required. Of course there's a lot of activity going on in ICOs, but we don't see a lot of institutionalization of ICO space. It stills us like Wild West. It doesn't mean that these things aren't going on right now. It just means that it hasn't been institutionalized. It hasn't been brought out into big boy space, right? Big money space. It's still a lot of startups and your own things, which is valid, which is very valid. But this is the institutional growth path. And in order for us to get maximal global cash, we need everybody on board, including all the institutions, because we're all corporations are a good thing. That was so anticlimactic. After we have custodial, then robbers go away. Because then once you have custodial and insurance, right, someone else taking care of the exchange's money, the exchange doesn't need to take hold money anymore. And therefore you don't have a problem of robbers in your exchange space anymore. And that's why custodial insurance is very, very important, okay? After we clean up the exchanges, then you can start moving towards more of the exploratory parts of, thank you very much. I can see it much better now. The more uncharted the new country part of the world, which is the capital markets and ICOs, right? And so that space is going to be very interesting. I don't have too much to say on it because we're still working on the other parts. But I think this is the path and that's the goal. Because when we get to the point when ICOs and tokenization of everything becomes institutionalized and made safe for your average mom and pop Joe Smith. Then that's when we can say, this is global cash, right? This system is now running the financial system of the world. This is the fintech 2.0. So now that I can show the map, let's give a little talk about what we're doing in this space. Cuz I know there's a lot of hints and there's a lot of articles which may or may not be too accurate. So first off, I mean, we upgrade. And on the upgrading, all SPI is doing things in these spaces under those companies. So SPI virtual currencies, which is an exchange that will, or brokerage, sorry, I made a mistake myself. Brokerage, which will be opening up this year. SPI match, which is a purely exchange. Just basically matchmaking liquidity pool. And SPI remit is the Rimmins company, which is trying to move their Rimmins models to adopt some blockchain technology to do that in a cheaper way. Once we upgrade down there, we're gonna get SPI crypto. That's our mining arm and we've started mining earlier this year. And I'm proud to say that we're about 5% on a good day, 5% to 7% on a good day. We're down there by the way, it's hard to see, but mining over there. So that's very important because without mining, you don't actually have any control over the transactions that you want to process as part of your exchanges or your Rimmins or your brokerage business. You're gonna need to process your transactions. You can't always trust the general mining community to do it for you. All the time. So you should probably have some mining capability yourself. Next junction, SBI Shoken, which is in Japanese. Which is the equity trading platform, online trading platform, which is the bread and butter of SBI group. We're planning on, we do some stuff which may involve securitization and token trading in the future. And of course, these big plays, which will remain, I'll leave as question marks, will be upcoming. But the focus very much so on custodial space. So I'll finally, Capital Markets SBI owns a large part of Morningstar, which is an equity rating company. So we plan on gearing them towards rating ICOs to giving them a ranking. Kind of like the AA bonds, AAA bonds. We don't want any of those fake AA mortgage backed securities that they had back in 2017 though, yeah. But we do think there's a value in that because not everybody can read a nice white paper and then think, this is pretty good. I think I should put $1,000 on it. So I think we're not gonna be a say worthy authority, but we're gonna give ratings. And I'm sure other companies will start doing the same and hopefully that will do its part in cleaning up the ICO industry a little bit and keeping the wild players out in fringes. Finally, then I think the last thing, which is kind of in the future when we start going out into the sea is IoT, right? So once we have tokenization of everything due to our new Capital Markets territory of ICOs, then we can start actually having machine, drive, cars, electrical meters, metering things and being paid in token. And basically the whole machine economy is opened up. So, for those keeping track, that was actually ten points on the board. So it is an, so that, I'm sorry, I'm sorry. We get the market, that if we get an extra victory point. And therefore, we get our ten victory points. That will, I believe, will bring us to global cash adoption. So that kind of runs up my presentation. Does anybody have any questions? Do we have time for questions? No, sorry, so find me afterwards.