Latest / Financial Survival Network / Stablecoins Slashing Credit Card Fees - Gerson Gibbs #6300

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Stablecoins Slashing Credit Card Fees - Gerson Gibbs #6300 · Financial Survival Network

• 0:00
  Speaker 1: Well. A stable coin is a type of digital currency
• 0:04
  Speaker 1: that's basically designed to minimize price volatility in the traditional
• 0:10
  Speaker 1: stable coin. It's based on the popularity of the stable
• 0:13
  Speaker 1: coin of value, and it fluctuates considerably depending on the
• 0:18
  Speaker 1: level of popularity.
• 0:19
  Speaker 2: You're listening to Carrie Letz's Financial Survival Network, where you
• 0:23
  Speaker 2: get valuable information. You just can't find anywhere else to
• 0:27
  Speaker 2: thrive in today's trying times. You need the Financial Survival
• 0:31
  Speaker 2: Network now more than ever. Go to Financial Survivalnetwork dot
• 0:36
  Speaker 2: com and get your free newsletter and gift. Financial Survival
• 0:40
  Speaker 2: Network now more than.
• 0:43
  Speaker 3: Ever, and welcome. You are listening to the Financial Survival Network.
• 0:51
  Speaker 3: I'm your host, Carrie Lutz. Well, it's July first, We're
• 0:55
  Speaker 3: halfway through the year. The crypto space is moving so
• 0:59
  Speaker 3: rapid you can't believe it. You ignore it at your
• 1:02
  Speaker 3: own peril. I was at the Bitcoin twenty twenty five
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  Speaker 3: conference in Vegas, brought to you either by black Rock
• 1:11
  Speaker 3: or Blackstone, I can't remember which one, but it doesn't
• 1:15
  Speaker 3: really matter. There's huge, huge money behind this. It wasn't
• 1:20
  Speaker 3: in the convention center, it was in the Venetian and
• 1:23
  Speaker 3: the booths I saw ranged anywhere from one hundred thousand
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  Speaker 3: to multiple seven figures. And a trend that we picked
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  Speaker 3: up on is the stable coin. And right now with
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  Speaker 3: us is Gerson Gibbs, executive at Bellot Capital and expert
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  Speaker 3: in stable coins in crypto. Gerson, what's the deal here?
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  Speaker 3: Retailers are going to start to take in stable coins,
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  Speaker 3: They're going to issue their own how's this working.
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  Speaker 1: Our retailer is a thank you for having me carry
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  Speaker 1: But retailers, to answer your questions, are definitely, in my opinion,
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  Speaker 1: shifting towards stable coin. I believe that it's going to
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  Speaker 1: assist them with dropping liabilities a little bit.
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  Speaker 3: All these associated fees.
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  Speaker 1: With quite a card transactions can be a big costly
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  Speaker 1: for our retailers. And when we see all these things
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  Speaker 1: occurring with the tarofts and possible advice increases, I think
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  Speaker 1: that retailers are going to be looking for any areas
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  Speaker 1: in their business that they can reduce any type of course,
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  Speaker 1: and I think that stable coins are one of those
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  Speaker 1: areas well.
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  Speaker 3: You know, many people out there believe that credit card
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  Speaker 3: clearing houses and credit card issuers it's just a big
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  Speaker 3: extractive grift to take money from small retailers because let's
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  Speaker 3: face it. The government doesn't pay credit card fees. Large
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  Speaker 3: retailers even they are I don't want to say exempt
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  Speaker 3: from it, but their fees are drastically reduced. Right, So,
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  Speaker 3: small retailer, the medium sized retailer is really bearing the
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  Speaker 3: brunt of all this, aren't they.
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  Speaker 1: Absolutely. I think that that's the business model for a
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  Speaker 1: lot of these credit card companies. For the target audience
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  Speaker 1: are the smaller and mid size retailers. I think that
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  Speaker 1: those are the companies that pay a bulk of the
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  Speaker 1: fees and they're just looking to get away from that,
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  Speaker 1: and I think this is an opportunity. There are many
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  Speaker 1: different means of payment processing. You know, you got things
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  Speaker 1: like PayPal. You have these digital apps on telephones that
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  Speaker 1: you're utilizing the pay but those are those are still
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  Speaker 1: tied to credit cards, and that's where the issue begins.
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  Speaker 1: So I think these stable coins will definitely assist with that.
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  Speaker 3: All Right, So, you know, I guess you've got to
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  Speaker 3: explain exactly what a stable coin is, how it works,
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  Speaker 3: and how it cuts costs.
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  Speaker 1: Okay, Well, a stable coin is a type of digital
• 4:06
  Speaker 1: currency that's basically designed to minimize price volatility in the
• 4:12
  Speaker 1: traditional stable coin. It's based on the popularity of the
• 4:16
  Speaker 1: stable coin the value and it fluctuates considerably depending on
• 4:21
  Speaker 1: the level of popularity. A stable coin is a digital
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  Speaker 1: currency that is typically pegged to a stable asset like
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  Speaker 1: a US dollar or gold, typically dollar for dollar. And
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  Speaker 1: the differences from a credit card company is the speed processing.
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  Speaker 1: And because these things are pegged to a network, all
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  Speaker 1: the transactions and fee costs are almost eliminated. Right Because
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  Speaker 1: these are companies like a Discover or a Chase, they
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  Speaker 1: don't have the overhead expenses, so they have to charge
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  Speaker 1: these fees. With stable coins, there's no fees. Everything's on
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  Speaker 1: a network on these digital exchanges, and that's how they
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  Speaker 1: managed to determine what the value of the stable coin is.
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  Speaker 1: So a stable coin is simply, simply put more of
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  Speaker 1: a think of a gift card. If you were to
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  Speaker 1: put money on our Starbucks gift card, but you can
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  Speaker 1: use the Starbucks gift card anywhere in the world to
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  Speaker 1: purchase any product.
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  Speaker 3: Interesting here, really interesting. So yeah, like, what does the
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  Speaker 3: name stable coin mean exactly?
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  Speaker 1: Stability there's no volatility. So for example, if you were
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  Speaker 1: to have ethereum bitcoin, the value is going to change.
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  Speaker 1: We've seen as the market was changing or if Trump
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  Speaker 1: is making an announcement, a bitcoin that was worth for
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  Speaker 1: one thousand bucks all of a sudden is worth twenty
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  Speaker 1: thousand bucks because of popularity. And there's no really rationale
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  Speaker 1: as to the volatility outside of popularity, right, So if
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  Speaker 1: there's negative press surrounding the bitcoins, that is a drop
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  Speaker 1: in the price, and that is the difficulty in determining
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  Speaker 1: the value. So what Senate has decided is to create
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  Speaker 1: a digital currency that doesn't have as much volatility. And
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  Speaker 1: that's why it's called stable coin because it's stable, right,
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  Speaker 1: It's pegged to something that's a real asset, like a
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  Speaker 1: dollar dollar to dollar, So it's not going to change
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  Speaker 1: based on popularity. And that assists retailers, right, because the
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  Speaker 1: retailers are, you know, utilizing stable coin, they want to
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  Speaker 1: make sure that they could actually determine the value of
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  Speaker 1: the stable coin when they use utilizing it for transactions.
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  Speaker 1: And that's one of the issues that we've had with
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  Speaker 1: regard to this digital currency space that it was based
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  Speaker 1: on popularity opposed to a real asset.
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  Speaker 3: Gotcha, okay, And so when we look like bitcoin, how
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  Speaker 3: does that differ from a stable coin?
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  Speaker 1: Well, a bitcoin is not backed by a hard asset
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  Speaker 1: based on popularity. If individuals feel that the value of
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  Speaker 1: bitcoin is more valuable, the value of it is going
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  Speaker 1: to go up, and as more individuals invest into it,
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  Speaker 1: you will see the value increasing. Unlike a stable coin,
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  Speaker 1: it doesn't matter the popularity. You're putting up the money
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  Speaker 1: or the collateral and that's giving you the value of
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  Speaker 1: your stable coin and there will be no fluctuations. That's
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  Speaker 1: the difference.
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  Speaker 3: So you could have a stable coin that could be
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  Speaker 3: backed by bitcoin, couldn't.
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  Speaker 1: You correct, correct, And that would have some fluctuations if
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  Speaker 1: you're utilizing your bitcoin to buy stable coin, And that's
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  Speaker 1: where there's a little bit of gray area and on
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  Speaker 1: which is trying to wrap their hands around it before
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  Speaker 1: actually passing the bill by the House. Because the people
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  Speaker 1: are utilizing bitcoin to stable coin, there's still that fluctuation.
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  Speaker 3: So there has to.
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  Speaker 1: Be laws surrounding those type of transactions.
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  Speaker 3: Okay, interesting, Interesting, So you are a regulator, you dealt
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  Speaker 3: with the big banks. What do you think the barriers
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  Speaker 3: are here regulation?
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  Speaker 1: One of the things about digital currency why it's attractive
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  Speaker 1: to a lot of individuals is because of the privacy
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  Speaker 1: features associated with it. All Right, So because of the
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  Speaker 1: privacy features. For investors and individuals who don't want the
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  Speaker 1: government having full transparency over their financials and investments, they
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  Speaker 1: take the digital currency angle. In addition to that, they
• 8:46
  Speaker 1: don't want bank involvements in their financials as much as
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  Speaker 1: it currently is, because if you're banking with a chase
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  Speaker 1: is totally different than banking with but than having your
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  Speaker 1: money in a digital currency. And one of the major
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  Speaker 1: issues is how do you regulate these things? How do
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  Speaker 1: you oversee it? How do you prevent fraud? And if
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  Speaker 1: there's so much privacy, how does the government get an
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  Speaker 1: opportunity to oversee. So that's where the real issue is
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  Speaker 1: and who's going to be the regulator that oversees it.
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  Speaker 1: Bitcoin again is not backed by any hard assets or
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  Speaker 1: real assets, but stable coin is depending on an asset
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  Speaker 1: that it's being backed by. For example, if we take
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  Speaker 1: the dollar, the FED oversees the dollar, right, if we
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  Speaker 1: take gold, the CFTC oversees gold. If the digital currency
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  Speaker 1: is utilized as an investment product, because you have the
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  Speaker 1: ability to invest in it also and turn it into
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  Speaker 1: an investment vehicle, the SEC oversees that. So digital currency
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  Speaker 1: has features of all the regulatory bodies. So the government
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  Speaker 1: is trying to determine who's going to lead the regulation
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  Speaker 1: over digital currencies, and that's one of the major issues
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  Speaker 1: right now.
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  Speaker 3: Gotcha all right? So we're kind of in the wild
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  Speaker 3: west here then, aren't we?
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  Speaker 1: Absolutely?
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  Speaker 3: All right? So when we have this conversation in five years,
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  Speaker 3: what is the landscape going to look like? Here?
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  Speaker 1: Oh, I think it's going to be figured out way
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  Speaker 1: before then. I think that with the new administration coming in,
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  Speaker 1: that was one of the primary goals to bring digital
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  Speaker 1: currency to the forefront. I think it improves international trade.
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  Speaker 1: I think it reduces fees for retailers, mid to small retailers,
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  Speaker 1: especially with regard to tariffs that are now changing the
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  Speaker 1: cost of goods. I think that retailers are looking for
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  Speaker 1: places to again reduce costs. I think it's gonna play
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  Speaker 1: out with digital currencies in a sense that it's going
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  Speaker 1: to assist with reducing some of these costs that credit
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  Speaker 1: cards processings are bringing, so on and so forth. So
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  Speaker 1: I believe in five years this will be the norm.
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  Speaker 1: It will be the main use of financials and use
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  Speaker 1: of money. It will be all digital, all.
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  Speaker 3: Right, And uh so, what impacts it's going to have
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  Speaker 3: on the banks.
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  Speaker 1: Well, they're gonna have have banks change your models. That's
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  Speaker 1: what I believe. I think traditional banking is never going
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  Speaker 1: to go away, but I think it's going to be
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  Speaker 1: an added feature to change your models, to restructure their
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  Speaker 1: pricing models and their fee models. I think they're going
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  Speaker 1: to figure out a way. But I think the traditional
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  Speaker 1: approach of the the process of fees, the three percent
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  Speaker 1: and of I think that model is going to change
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  Speaker 1: and be reduced tremendously.
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  Speaker 3: All Right, So we're into a whole new realm of
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  Speaker 3: finance here that JP Morgan, God rest his soul, never
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  Speaker 3: ever thought about it.
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  Speaker 1: Absolutely absolutely. I'm sure this wasn't even a thought back
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  Speaker 1: in the day. But now I think it's becoming a
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  Speaker 1: norm and we see it all the time. We actually
• 12:23
  Speaker 1: have been in some kind of a digital space for
• 12:26
  Speaker 1: some time now, with companies like Hey Pal, you have
• 12:30
  Speaker 1: companies like chime On. You have these credit card companies
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  Speaker 1: that are giving you the ability to not have the
• 12:37
  Speaker 1: physical credit card and have things on your phone. I think,
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  Speaker 1: in some way, shape or form, we've been shifting to
• 12:44
  Speaker 1: digital currency. I went to the store a couple of
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  Speaker 1: days ago, and I tried to pay cash, but I
• 12:52
  Speaker 1: didn't have any cash on me, you know, I just
• 12:55
  Speaker 1: use my credit cards that don't usually carry cash. So
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  Speaker 1: I think that we've been transitioning into this space for
• 13:02
  Speaker 1: some time now. I think that now we're actually looking
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  Speaker 1: at it's it's worldly impact and making it necessary changes
• 13:10
  Speaker 1: implemented into the United States as best as possible.
• 13:15
  Speaker 3: That really is fascinating that we're seeing this transition curve
• 13:21
  Speaker 3: and we're living through it right yet.
• 13:24
  Speaker 1: Yeah, Yeah, it's it's coming out of a coming out
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  Speaker 1: of an era and into a new era. I believe
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  Speaker 1: that again, this is going to be the main way
• 13:34
  Speaker 1: that we pay for our products in the United States,
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  Speaker 1: to be a digital currency.
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  Speaker 3: Mm hmm. Interesting. Interesting, you know, it just it's the
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  Speaker 3: economy is not what it used to be.
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  Speaker 1: Right, not at all, not at all, And I think
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  Speaker 1: that the younger generation is definitely pushing towards it. I
• 13:57
  Speaker 1: think that disadministration is very involved in the digital space.
• 14:03
  Speaker 1: Trump has his own coin, his family is highly involved
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  Speaker 1: in the space, and I believe again he believes that
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  Speaker 1: it's going to open up international business and be lucrative
• 14:14
  Speaker 1: for smaller to mid sized businesses in the United States.
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  Speaker 3: Yeah, that's that's pretty amazing. And you know, Trump's moves
• 14:23
  Speaker 3: with with crypto have been very controversial. You know, you
• 14:29
  Speaker 3: get that emollience clause, emoulment's clause and all that stuff.
• 14:35
  Speaker 3: Got any thoughts about that, Well.
• 14:38
  Speaker 1: I think that from some administration is extremely controversial because
• 14:43
  Speaker 1: of what I mentioned a little bit earlier. Bitcoin is
• 14:47
  Speaker 1: based on the popularity. The value of it is based
• 14:50
  Speaker 1: on popularity, and that's a huge issue. If you're the
• 14:55
  Speaker 1: president of the United States, you're one of the most
• 14:57
  Speaker 1: popular people in the world.
• 15:00
  Speaker 3: So if you.
• 15:00
  Speaker 1: Speak on you know, bitcoin or speak on digital currencies
• 15:04
  Speaker 1: in any manner, it could go in any direction. And
• 15:09
  Speaker 1: I think that Congress had a major issue with that.
• 15:13
  Speaker 1: Hence the creation of a stable coin, which doesn't necessarily
• 15:17
  Speaker 1: get impacted by you know, the president providing the world
• 15:22
  Speaker 1: with new information with relation to it. So I think that,
• 15:26
  Speaker 1: you know, the controversy surrounding that was, you know, how
• 15:29
  Speaker 1: do we control these popular politicians from providing the general
• 15:34
  Speaker 1: republic with information that's going to shift the value of
• 15:37
  Speaker 1: something that they own, right put in the political system
• 15:43
  Speaker 1: in a bit of jeopardy because they have no control
• 15:46
  Speaker 1: over the political figures. So I think it was a
• 15:49
  Speaker 1: big controversial. However, I think that it needed to be
• 15:53
  Speaker 1: done in order for a little bit of fire to
• 15:56
  Speaker 1: people be put under the government to ensure that it's
• 16:00
  Speaker 1: regulated correctly, and they're thinking about all of the features
• 16:03
  Speaker 1: associated with digital currency.
• 16:05
  Speaker 3: All right, all right, well, that's interesting and obviously Trump
• 16:09
  Speaker 3: is the best thing that ever happened to crypto in
• 16:13
  Speaker 3: our lifetimes for now.
• 16:16
  Speaker 1: For now, we'll see what the future beholds, But for now,
• 16:21
  Speaker 1: Trump definitely is one of the pioneers in the crypto
• 16:24
  Speaker 1: space and incorporating it into modern day financials.
• 16:29
  Speaker 3: And who would think, you know, a guy that doesn't
• 16:32
  Speaker 3: even use a computer, right.
• 16:36
  Speaker 1: Absolutely, it's always it's always the person that people wouldn't
• 16:42
  Speaker 1: never thought or assumed. And again I think that it
• 16:45
  Speaker 1: is just because the push that he's doing with tariffs
• 16:49
  Speaker 1: is definitely raising the prices on some of these smaller
• 16:52
  Speaker 1: and mid sized companies. But with the passing of the
• 16:56
  Speaker 1: digital stable coin, I think it could drop a lot
• 16:59
  Speaker 1: of process smps and balance out some of the costs
• 17:03
  Speaker 1: that have increased to do business in the United States.
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  Speaker 3: Right, all right, Well, this is a fascinating I appreciate
• 17:10
  Speaker 3: your coming on with us and helping to share your
• 17:14
  Speaker 3: knowledge with what's happening here. It's pretty amazing.
• 17:19
  Speaker 1: Thank you so much for having me carry Carry. It's
• 17:21
  Speaker 1: been a pleasure.
• 17:22
  Speaker 3: Likewise, I say, people want to find out more about you,
• 17:25
  Speaker 3: connect with you on the web. How do you do that? Gerson?
• 17:28
  Speaker 1: Definitely on my website is www dot Bellett B E
• 17:34
  Speaker 1: L I T E Capital C A P I T
• 17:38
  Speaker 1: A l dot com. You can find me there all.
• 17:41
  Speaker 3: Right, excellent. Appreciate you coming on and we'll look forward
• 17:45
  Speaker 3: to having you on again. If you've got a question
• 17:48
  Speaker 3: for Gerson myself, shoot me an email k L at
• 17:51
  Speaker 3: Carrie Lutz dot com and you'll find links to Gerson's
• 17:58
  Speaker 3: places on the web on Financial Survival Network dot com.
• 18:02
  Speaker 3: Just when you go there, we just asked that you
• 18:05
  Speaker 3: sign up for a free newsletter, Grayson. Been a pleasure.
• 18:08
  Speaker 3: Thanks for stopping by. Been a pleasure and enjoy to
• 18:10
  Speaker 3: ust of your day.
• 18:11
  Speaker 2: Carry, Thanks for listening to carry Letz's Financial Survival Network,
• 18:15
  Speaker 2: your solution to today's trying times. For the latest, go
• 18:19
  Speaker 2: to Financial Survivalnetwork dot com. Financial Survival Network now more
• 18:25
  Speaker 2: than ever