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.
• 0:00
  Speaker 2: A stable coin is a type of digital currency that's
• 0:05
  Speaker 2: basically designed to minimize price volatility. In the traditional stable coin,
• 0:10
  Speaker 2: it's based on the popularity of the stable coin the
• 0:13
  Speaker 2: value and it fluctuates considerably depending on the level of popularity.
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  Speaker 3: You're listening to Carrie Letz's Financial Survival Network, where you
• 0:23
  Speaker 3: get valuable information. You just can't find anywhere else to
• 0:27
  Speaker 3: thrive in today's trying times. You need the Financial Survival
• 0:31
  Speaker 3: Network now more than ever. Go to Financial Survivalnetwork dot
• 0:36
  Speaker 3: com and get your free newsletter and gift. Financial Survival
• 0:40
  Speaker 3: Network now more than.
• 0:43
  Speaker 1: Ever, and welcome. You are listening to the Financial Survival Network.
• 0:51
  Speaker 1: I'm your host, Carrie Lutz. Well, it's July first, We're
• 0:55
  Speaker 1: halfway through the year. The crypto space is moving so
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  Speaker 1: rapid you can't believe it. You ignore it at your
• 1:02
  Speaker 1: own peril. I was at the Bitcoin twenty twenty five
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  Speaker 1: conference in Vegas, brought to you either by black Rock
• 1:11
  Speaker 1: or Blackstone, I can't remember which one, but it doesn't
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  Speaker 1: really matter. There's huge, huge money behind this. It wasn't
• 1:20
  Speaker 1: in the convention center, it was in the Venetian and
• 1:23
  Speaker 1: the booths I saw ranged anywhere from one hundred thousand
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  Speaker 1: to multiple seven figures. And a trend that we picked
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  Speaker 1: up on is the stable coin. And right now with
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  Speaker 1: us is Gerson Gibbs, executive at Bellot Capital and expert
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  Speaker 1: in stable coins in crypto. Gerson, what's the deal here?
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  Speaker 1: Retailers are going to start to take in stable coins,
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  Speaker 1: They're going to issue their own how's this working.
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  Speaker 2: Our retailer is a thank you for having me carry
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  Speaker 2: But retailers, to answer your questions, are definitely, in my opinion,
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  Speaker 2: shifting towards stable coin. I believe that it's going to
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  Speaker 2: assist them with dropping liabilities a little bit.
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  Speaker 1: All these associated fees.
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  Speaker 2: With quite a card transactions can be a big costly
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  Speaker 2: for our retailers. And when we see all these things
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  Speaker 2: occurring with the tarofts and possible advice increases, I think
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  Speaker 2: that retailers are going to be looking.
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  Speaker 4: For any areas in their.
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  Speaker 2: Business that they can reduce any type of course, and
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  Speaker 2: I think that stable coins are one of those areas well.
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  Speaker 1: You know, many people out there believe that credit card
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  Speaker 1: clearing houses and credit card issuers it's just a big
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  Speaker 1: extractive grift to take money from small retailers because let's
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  Speaker 1: face it. The government doesn't pay credit card fees. Large
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  Speaker 1: retailers even they are I don't want to say exempt
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  Speaker 1: from it, but their fees are drastically reduced. Right, So,
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  Speaker 1: small retailer, the medium sized retailer is really bearing the
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  Speaker 1: brunt of all this, aren't they.
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  Speaker 4: Absolutely.
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  Speaker 2: I think that that's the business model for a lot
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  Speaker 2: of these credit card companies. For the target audience are
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  Speaker 2: the smaller and mid size retailers. I think that those
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  Speaker 2: are the companies that pay a bulk of the fees
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  Speaker 2: and they're just looking to get away from that, and
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  Speaker 2: I think this is an opportunity. There are many different
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  Speaker 2: means of payment processing. You know, you got things like PayPal.
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  Speaker 2: You have these digital apps on telephones that you're utilizing
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  Speaker 2: the pay but those are those are still tied to
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  Speaker 2: credit cards, and that's where the issue begins. So I
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  Speaker 2: think these stable coins will definitely assist with that.
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  Speaker 1: All Right, So, you know, I guess you've got to
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  Speaker 1: explain exactly what a stable coin is, how it works,
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  Speaker 1: and how it cuts costs.
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  Speaker 2: Okay, Well, a stable coin is a type of digital
• 4:06
  Speaker 2: currency that's basically designed to minimize price volatility in the
• 4:12
  Speaker 2: traditional stable coin. It's based on the popularity of the
• 4:16
  Speaker 2: stable coin the value and it fluctuates considerably depending on
• 4:21
  Speaker 2: the level of popularity. A stable coin is a digital
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  Speaker 2: currency that is typically pegged to a stable asset like
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  Speaker 2: a US dollar or gold.
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  Speaker 4: Typically dollar for dollar.
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  Speaker 2: And the differences from a credit card company is the
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  Speaker 2: speed processing. And because these things are pegged to a network,
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  Speaker 2: all the transactions and fee costs are almost eliminated. Right
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  Speaker 2: Because these are companies like a Discover or a Chase,
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  Speaker 2: they don't have the overhead expenses, so they have to
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  Speaker 2: charge these fees.
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  Speaker 4: With stable coins, there's no fees.
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  Speaker 2: Everything's on a network on these digital exchanges, and that's
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  Speaker 2: how they managed to determine what the value of the
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  Speaker 2: stable coin is. So a stable coin is simply, simply
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  Speaker 2: put more of a.
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  Speaker 4: Think of a gift card.
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  Speaker 2: If you were to put money on our Starbucks gift card,
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  Speaker 2: but you can use the Starbucks gift card anywhere in
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  Speaker 2: the world to purchase any product.
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  Speaker 1: Interesting here, really interesting. So yeah, like, what does the
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  Speaker 1: name stable coin mean exactly?
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  Speaker 2: Stability there's no volatility. So for example, if you were
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  Speaker 2: to have ethereum bitcoin, the value is going to change.
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  Speaker 2: We've seen as the market was changing or if Trump
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  Speaker 2: is making an announcement, a bitcoin that was worth for
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  Speaker 2: one thousand bucks all of a sudden is worth twenty
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  Speaker 2: thousand bucks because of popularity. And there's no really rationale
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  Speaker 2: as to the volatility outside of popularity, right, So if
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  Speaker 2: there's negative press surrounding the bitcoins, that is a drop
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  Speaker 2: in the price, and that is the difficulty in determining
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  Speaker 2: the value. So what Senate has decided is to create
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  Speaker 2: a digital currency that doesn't have as much volatility. And
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  Speaker 2: that's why it's called stable coin because it's stable, right,
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  Speaker 2: It's pegged to something that's a real asset, like a
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  Speaker 2: dollar dollar to dollar, So it's not going to change
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  Speaker 2: based on popularity. And that assists retailers, right, because the
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  Speaker 2: retailers are, you know, utilizing stable coin, they want to
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  Speaker 2: make sure that they could actually determine the value of
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  Speaker 2: the stable coin when they use utilizing it for transactions.
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  Speaker 2: And that's one of the issues that we've had with
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  Speaker 2: regard to this digital currency space that it was based
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  Speaker 2: on popularity opposed to a real asset.
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  Speaker 1: Gotcha, okay, And so when we look like bitcoin, how
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  Speaker 1: does that differ from a stable coin?
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  Speaker 2: Well, a bitcoin is not backed by a hard asset
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  Speaker 2: based on popularity. If individuals feel that the value of
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  Speaker 2: bitcoin is more valuable, the value of it is going
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  Speaker 2: to go up, and as more individuals invest into it,
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  Speaker 2: you will see the value increasing. Unlike a stable coin,
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  Speaker 2: it doesn't matter the popularity. You're putting up the money
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  Speaker 2: or the collateral and that's giving you the value of
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  Speaker 2: your stable coin and there will be no fluctuations.
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  Speaker 4: That's the difference.
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  Speaker 1: So you could have a stable coin that could be
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  Speaker 1: backed by bitcoin, couldn't.
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  Speaker 2: You correct, correct, And that would have some fluctuations if
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  Speaker 2: you're utilizing your bitcoin to buy stable coin, And that's
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  Speaker 2: where there's a little bit of gray area and on
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  Speaker 2: which is trying to wrap their hands around it before
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  Speaker 2: actually passing the bill by the House. Because the people
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  Speaker 2: are utilizing bitcoin to stable coin, there's still that fluctuation.
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  Speaker 1: So there has to.
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  Speaker 4: Be laws surrounding those type of transactions.
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  Speaker 1: Okay, interesting, Interesting, So you are a regulator, you dealt
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  Speaker 1: with the big banks. What do you think the barriers.
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  Speaker 4: Are here regulation?
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  Speaker 2: One of the things about digital currency why it's attractive
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  Speaker 2: to a lot of individuals is because of the privacy
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  Speaker 2: features associated with it. All Right, So because of the
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  Speaker 2: privacy features. For investors and individuals who don't want the
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  Speaker 2: government having full transparency over their financials and investments, they
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  Speaker 2: take the digital currency angle.
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  Speaker 4: In addition to.
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  Speaker 2: That, they don't want bank involvements in their financials as
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  Speaker 2: much as it currently is, because if you're banking with
• 8:52
  Speaker 2: a chase is totally different than banking with but than
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  Speaker 2: having your money in a digital currency. And one of
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  Speaker 2: the major issues is how do you regulate these things?
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  Speaker 2: How do you oversee it? How do you prevent fraud?
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  Speaker 2: And if there's so much privacy, how does the government
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  Speaker 2: get an opportunity to oversee. So that's where the real
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  Speaker 2: issue is and who's going to be the regulator that
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  Speaker 2: oversees it. Bitcoin again is not backed by any hard
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  Speaker 2: assets or real assets, but stable coin is depending on
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  Speaker 2: an asset that it's being backed by. For example, if
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  Speaker 2: we take the dollar, the FED oversees the dollar, right,
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  Speaker 2: if we take gold, the CFTC oversees gold. If the
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  Speaker 2: digital currency is utilized as an investment product, because you
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  Speaker 2: have the ability to invest in it also and turn
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  Speaker 2: it into an investment vehicle, the SEC oversees that. So
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  Speaker 2: digital currency has features of all the regulatory bodies. So
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  Speaker 2: the government is trying to determine who's going to lead
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  Speaker 2: the regulation over digital currencies, and that's one of the
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  Speaker 2: major issues right now.
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  Speaker 1: Gotcha all right? So we're kind of in the wild
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  Speaker 1: west here then, aren't we?
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  Speaker 4: Absolutely?
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  Speaker 1: All right? So when we have this conversation in five years,
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  Speaker 1: what is the landscape going to look like? Here?
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  Speaker 4: Oh, I think it's going to be figured out way
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  Speaker 4: before then.
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  Speaker 2: I think that with the new administration coming in, that
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  Speaker 2: was one of the primary goals to bring digital currency
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  Speaker 2: to the forefront. I think it improves international trade. I
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  Speaker 2: think it reduces fees for retailers, mid to small retailers,
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  Speaker 2: especially with regard to tariffs that are now changing the.
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  Speaker 4: Cost of goods.
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  Speaker 2: I think that retailers are looking for places to again
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  Speaker 2: reduce costs.
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  Speaker 4: I think it's gonna.
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  Speaker 2: Play out with digital currencies in a sense that it's
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  Speaker 2: going to assist with reducing some of these costs that
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  Speaker 2: credit cards processings are bringing, so on and so forth.
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  Speaker 4: So I believe in five years this will be the norm.
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  Speaker 4: It will be the main use of financials and use
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  Speaker 4: of money. It will be all digital, all.
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  Speaker 1: Right, And uh so, what impacts it's going to have
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  Speaker 1: on the banks.
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  Speaker 2: Well, they're gonna have have banks change your models. That's
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  Speaker 2: what I believe. I think traditional banking is never going
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  Speaker 2: to go away, but I think it's going to be
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  Speaker 2: an added feature to change your models, to restructure their
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  Speaker 2: pricing models and their fee models. I think they're going
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  Speaker 2: to figure out a way. But I think the traditional
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  Speaker 2: approach of the the process of fees, the three percent
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  Speaker 2: and of I think that model is going to change
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  Speaker 2: and be reduced tremendously.
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  Speaker 1: All Right, So we're into a whole new realm of
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  Speaker 1: finance here that JP Morgan, God rest his soul, never
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  Speaker 1: ever thought about it.
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  Speaker 4: Absolutely absolutely. I'm sure this wasn't even a thought back
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  Speaker 4: in the day.
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  Speaker 2: But now I think it's becoming a norm and we
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  Speaker 2: see it all the time. We actually have been in
• 12:24
  Speaker 2: some kind of a digital space for some time now,
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  Speaker 2: with companies like Hey Pal, you have companies like chime On.
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  Speaker 2: You have these credit card companies that are giving you
• 12:35
  Speaker 2: the ability to not have the physical credit card and
• 12:39
  Speaker 2: have things on your phone. I think, in some way,
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  Speaker 2: strape or form, we've been shifting to digital currency.
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  Speaker 4: I went to the store a couple of days ago and.
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  Speaker 2: I tried to pay cash, but I didn't have any
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  Speaker 2: cash on me, you know, I just use my credit
• 12:56
  Speaker 2: cards that don't usually carry cash.
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  Speaker 4: So I think that we've been transitioning into this space
• 13:02
  Speaker 4: for some time now.
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  Speaker 2: I think that now we're actually looking at it's it's
• 13:07
  Speaker 2: worldly impact and making it necessary changes implemented into the
• 13:13
  Speaker 2: United States as best as possible.
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  Speaker 1: That really is fascinating that we're seeing this transition curve
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  Speaker 1: and we're living through it right yet.
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  Speaker 2: Yeah, Yeah, it's it's coming out of a coming out
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  Speaker 2: of an era and into a new era. I believe
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  Speaker 2: that again, this is going to be the main way
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  Speaker 2: that we pay for our products in the United States,
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  Speaker 2: to be a digital currency.
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  Speaker 1: Mm hmm. Interesting. Interesting, you know, it just it's the
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  Speaker 1: economy is not what it used to be.
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  Speaker 2: Right, not at all, not at all, And I think
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  Speaker 2: that the younger generation is definitely pushing towards it. I
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  Speaker 2: think that disadministration is very involved in the digital space.
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  Speaker 2: Trump has his own coin, his family is highly involved
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  Speaker 2: in the space, and I believe again he believes that
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  Speaker 2: it's going to open up international business and be lucrative
• 14:14
  Speaker 2: for smaller to mid sized.
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  Speaker 4: Businesses in the United States.
• 14:18
  Speaker 1: Yeah, that's that's pretty amazing. And you know, Trump's moves
• 14:23
  Speaker 1: with with crypto have been very controversial. You know, you
• 14:29
  Speaker 1: get that emollience clause, emoulment's clause and all that stuff.
• 14:35
  Speaker 1: Got any thoughts about that, Well.
• 14:38
  Speaker 2: I think that from some administration is extremely controversial because
• 14:43
  Speaker 2: of what I mentioned a little bit earlier.
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  Speaker 4: Bitcoin is based on the popularity.
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  Speaker 2: The value of it is based on popularity, and that's
• 14:53
  Speaker 2: a huge issue. If you're the president of the United States,
• 14:56
  Speaker 2: you're one of the most popular people in the world.
• 15:00
  Speaker 1: So if you.
• 15:00
  Speaker 2: Speak on you know, bitcoin or speak on digital currencies
• 15:04
  Speaker 2: in any manner, it could go in any direction.
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  Speaker 4: And I think that Congress had a major issue with that.
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  Speaker 2: Hence the creation of a stable coin, which doesn't necessarily
• 15:17
  Speaker 2: get impacted by you know, the president providing.
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  Speaker 4: The world with new information with relation to it.
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  Speaker 2: So I think that, you know, the controversy surrounding that was,
• 15:28
  Speaker 2: you know, how do we control these popular politicians from
• 15:32
  Speaker 2: providing the general republic with information that's going to shift
• 15:36
  Speaker 2: the value of something that they own, right put in
• 15:40
  Speaker 2: the political system in a bit of jeopardy because they
• 15:45
  Speaker 2: have no control over the political figures. So I think
• 15:49
  Speaker 2: it was a big controversial. However, I think that it
• 15:52
  Speaker 2: needed to be done in order for a little bit
• 15:56
  Speaker 2: of fire to people be put under the government to
• 15:58
  Speaker 2: ensure that it's regulated correctly, and they're thinking about all
• 16:02
  Speaker 2: of the features associated with digital currency.
• 16:05
  Speaker 1: All right, all right, well, that's interesting and obviously Trump
• 16:09
  Speaker 1: is the best thing that ever happened to crypto in
• 16:13
  Speaker 1: our lifetimes for now.
• 16:16
  Speaker 2: For now, we'll see what the future beholds, But for now,
• 16:21
  Speaker 2: Trump definitely is one of the pioneers in the crypto
• 16:24
  Speaker 2: space and incorporating it into modern day financials.
• 16:29
  Speaker 1: And who would think, you know, a guy that doesn't
• 16:32
  Speaker 1: even use a computer, right.
• 16:36
  Speaker 2: Absolutely, it's always it's always the person that people wouldn't
• 16:42
  Speaker 2: never thought or assumed. And again I think that it
• 16:45
  Speaker 2: is just because the push that he's doing with tariffs
• 16:49
  Speaker 2: is definitely raising the prices on some of these smaller
• 16:52
  Speaker 2: and mid sized companies. But with the passing of the
• 16:56
  Speaker 2: digital stable coin, I think it could drop a lot
• 16:59
  Speaker 2: of process smps and balance out some of the costs
• 17:03
  Speaker 2: that have increased.
• 17:04
  Speaker 4: To do business in the United States.
• 17:06
  Speaker 1: Right, all right, Well, this is a fascinating I appreciate
• 17:10
  Speaker 1: your coming on with us and helping to share your
• 17:14
  Speaker 1: knowledge with what's happening here. It's pretty amazing.
• 17:19
  Speaker 4: Thank you so much for having me carry Carry. It's
• 17:21
  Speaker 4: been a pleasure.
• 17:22
  Speaker 1: Likewise, I say, people want to find out more about you,
• 17:25
  Speaker 1: connect with you on the web. How do you do that? Gerson?
• 17:28
  Speaker 2: Definitely on my website is www dot Bellett B E
• 17:34
  Speaker 2: L I T E Capital C A P I T
• 17:38
  Speaker 2: A l dot com.
• 17:40
  Speaker 4: You can find me there.
• 17:41
  Speaker 1: All right, excellent. Appreciate you coming on and we'll look
• 17:45
  Speaker 1: forward to having you on again. If you've got a
• 17:47
  Speaker 1: question for Gerson myself, shoot me an email k L
• 17:50
  Speaker 1: at Carrie Lutz dot com and you'll find links to
• 17:56
  Speaker 1: Gerson's places on the web on Financial Survival Network dot com.
• 18:02
  Speaker 1: Just when you go there, we just asked that you
• 18:05
  Speaker 1: sign up for a free newsletter, Grayson. Been a pleasure.
• 18:08
  Speaker 1: Thanks for stopping by. Been a pleasure and enjoy to
• 18:10
  Speaker 1: ust of your day.
• 18:11
  Speaker 3: Carry, Thanks for listening to carry Letz's Financial Survival Network,
• 18:15
  Speaker 3: your solution to today's trying times. For the latest, go
• 18:19
  Speaker 3: to Financial Survivalnetwork dot com. Financial Survival Network now more
• 18:25
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