Latest / The Paul Barron Crypto Show / Japan Declares Emergency!🚨AI Attacks Incoming🔥Crypto Final Hope?

Transcript

Japan Declares Emergency!🚨AI Attacks Incoming🔥Crypto Final Hope? · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Japan has a state of emergency.
• 0:02
  Speaker 2: Today we'll break it down for you because this will
• 0:04
  Speaker 2: have immediate impact on crypto, but something even bigger, and
• 0:08
  Speaker 2: that of course is cyber warfare that seems to be
• 0:11
  Speaker 2: happening worldwide.
• 0:13
  Speaker 1: Stay tuned, I'll explain.
• 0:15
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• 1:16
  Speaker 2: All right, so let's get going here. And I want
• 1:18
  Speaker 2: to start off first of all with the positive side
• 1:21
  Speaker 2: of this, and that is that PPI came in at 6.8.
• 1:24
  Speaker 2: Expectations Japan were 7.6 so a significant move downward and
• 1:30
  Speaker 2: if you look at the historical Japan producer prices change
• 1:35
  Speaker 2: you can see here since July we have started to
• 1:38
  Speaker 2: see a decline and the real question does this continue
• 1:43
  Speaker 2: to move its way down and does Japan start to
• 1:46
  Speaker 2: get into a position that could change things dramatically one
• 1:50
  Speaker 2: thing though that is happening significantly within Japan is is that.
• 1:54
  Speaker 1: They have declared a cyber emergency.
• 1:56
  Speaker 2: And this, of course, is affecting millions of consumers who
• 1:59
  Speaker 2: are affected in hacks. And this is happening really on
• 2:03
  Speaker 2: a level that we haven't seen before. In fact, the
• 2:06
  Speaker 2: finance minister has asked banks to improve protections against fraud
• 2:10
  Speaker 2: after a series of cyber attacks rattled the country in
• 2:13
  Speaker 2: recent years. Just to give you an example, I want
• 2:15
  Speaker 2: to go to a clip real quick, because this is
• 2:18
  Speaker 2: Japan talking about the urgency of what's happening.
• 2:21
  Speaker 1: Take a look.
• 2:22
  Speaker 3: The chairperson of the Japan Association of Corporate Executives has
• 2:26
  Speaker 3: expressed strong alarm over a recent series of cyber attacks.
• 2:30
  Speaker 3: GMO Research and AI said more than 940,000 records of
• 2:35
  Speaker 3: information had been leaked. Discount store operator Mr. Max Holding
• 2:40
  Speaker 3: said its membership information had been leaked, with as many
• 2:43
  Speaker 3: as 1.73 million members potentially affected. Japanese watchmaker Citizen also
• 2:49
  Speaker 3: said the personal information of about 100,000 people could have
• 2:54
  Speaker 3: been leaked. In the case involving the car-sharing service Park24, 6.6
• 2:59
  Speaker 3: million records were leaked. That included addresses and images of
• 3:04
  Speaker 3: driver's licenses that could be used as identity verification documents.
• 3:09
  Speaker 3: The cybersecurity firm Magnica says information leaks have become more
• 3:14
  Speaker 3: frequent since July, The firm was seeing an average of
• 3:17
  Speaker 3: about six suspected breaches of corporate websites a month. Since July,
• 3:23
  Speaker 3: that number has jumped to 23.
• 3:25
  Speaker 4: The attackers are likely using AI to search for system
• 3:29
  Speaker 4: weaknesses anywhere they can find them. One security researcher told
• 3:34
  Speaker 4: us he's never seen anything like it. This news just
• 3:37
  Speaker 4: keeps coming out, and it feels like they're spiraling, and
• 3:40
  Speaker 4: it's very frightening.
• 3:41
  Speaker 5: I agree.
• 3:43
  Speaker 2: So it's not just cyber attacks. Now we're getting into ransomware,
• 3:47
  Speaker 2: which is getting even more efficient. If you look at
• 3:49
  Speaker 2: this chart right here from Ransomware Live, you can see
• 3:52
  Speaker 2: the 23 and 2024 scores right there on the green
• 3:55
  Speaker 2: and the blue line, right? And then you go into
• 3:58
  Speaker 2: 2025 and six, we are seeing a dramatic increase in
• 4:03
  Speaker 2: the amount of ransomware attacks, which of course are being
• 4:07
  Speaker 2: also aided by AI in a lot of these tool sets.
• 4:10
  Speaker 2: So this is something that I'm not sure that the
• 4:13
  Speaker 2: world is ready for, much less some of these major industries.
• 4:16
  Speaker 2: Japan is getting on the offense, though. What they're doing
• 4:19
  Speaker 2: is they're authorizing an offensive cyber operation.
• 4:22
  Speaker 1: This all started this month.
• 4:24
  Speaker 2: And the way that they're doing this, it's kind of
• 4:26
  Speaker 2: a self-defense force to conduct offensive cyber operations. I wonder
• 4:31
  Speaker 2: why we haven't taken this kind of step right here
• 4:33
  Speaker 2: in the U.S. And I'll explain why, because this is
• 4:36
  Speaker 2: probably going to hit stateside very soon. This was the
• 4:39
  Speaker 2: chief cabinet secretary, Minoru Kihara. He stated that the nation
• 4:43
  Speaker 2: faces the most complex national security environment since World War II.
• 4:48
  Speaker 1: That's how bad this is. And this is going to
• 4:50
  Speaker 1: be able to enable.
• 4:51
  Speaker 2: Proactive cyber defense actions, basically allowing Japan's police and self-defense
• 4:57
  Speaker 2: forces to attack and disable infrastructure using this for cyber attacks.
• 5:02
  Speaker 1: So basically, now.
• 5:04
  Speaker 2: You have almost like pre-crime, I guess, out there, going
• 5:08
  Speaker 2: out and trying to attack installations or technology infrastructure that's
• 5:13
  Speaker 2: being utilized, which I wonder if there's going to be
• 5:16
  Speaker 2: any subsequent stoppages of companies that aren't even aware that
• 5:20
  Speaker 2: this is going on. So there's going to be a
• 5:22
  Speaker 2: lot of changes, I think, here in the very near future.
• 5:25
  Speaker 2: I want to go to France now because this isn't
• 5:29
  Speaker 2: just happening in Japan. And we're going to get in
• 5:31
  Speaker 2: some Japan good news around crypto. But I want to
• 5:34
  Speaker 2: go into France because this is getting into some of
• 5:37
  Speaker 2: the hacks that's occurring in France that, of course, are
• 5:40
  Speaker 2: having a much larger effect.
• 5:42
  Speaker 1: Take a look.
• 5:43
  Speaker 6: Hackers managed to take control of the thermostats and forced
• 5:46
  Speaker 6: them to warm overnight. Some fires also broke out, according
• 5:50
  Speaker 6: to authorities. Leclerc, the Coopérative U Group, Monoprix and Carrefour
• 5:54
  Speaker 6: were all affected. The worst hit was Les Mousquetaires Group,
• 5:58
  Speaker 6: with 300 shops. Spoiled products in this Paris suburb supermarket
• 6:02
  Speaker 6: are estimated to cost 55,000 euros.
• 6:06
  Speaker 7: One store manager in regional France says his fridges reached
• 6:09
  Speaker 7: 80 degrees and everything melted.
• 6:12
  Speaker 1: It's an enormous loss of produce.
• 6:14
  Speaker 7: It's estimated tens of millions in produce will have been spoiled.
• 6:18
  Speaker 6: To avoid more attacks, the director has disconnected the remote
• 6:21
  Speaker 6: operation of the store's cold units. They've switched everything off
• 6:25
  Speaker 6: and disconnected it all so that there's no risk of
• 6:27
  Speaker 6: further attacks.
• 6:29
  Speaker 2: Could Australian supermarkets be at risk of coming under similar attacks?
• 6:33
  Speaker 5: Oh, of course.
• 6:34
  Speaker 1: Yeah, no, everyone around the world is in the same position, really.
• 6:37
  Speaker 8: Hundreds, if not thousands, of other customers globally that still
• 6:40
  Speaker 8: have not applied this security update to their equipment. You
• 6:44
  Speaker 8: mentioned your Rivian being subject to AI cyber attacks. If
• 6:47
  Speaker 8: you are in the market for a 2012 Honda CR-V
• 6:50
  Speaker 8: with approximately 250,000 miles, let me know because I can
• 6:54
  Speaker 8: tell you there's not one computer in that thing. It
• 6:56
  Speaker 8: runs on Flintstone legs. All right.
• 6:59
  Speaker 2: So the point being is that we are starting to
• 7:02
  Speaker 2: see an advancement. And now you've got tools that are
• 7:05
  Speaker 2: enabling these cyber attackers to essentially leapfrog most of the
• 7:09
  Speaker 2: attempts to of cybersecurity that's been put out there, and
• 7:13
  Speaker 2: I think this is the challenge. Speaking of France, let's
• 7:16
  Speaker 2: go over to one of the major companies in the
• 7:17
  Speaker 2: crypto side of things, and that is Ledger, based in France.
• 7:21
  Speaker 2: They are continuing to get hit with even more implants
• 7:24
  Speaker 2: found in Ledger, this one in a Ledger Flex, bought
• 7:27
  Speaker 2: at Singapore Airport.
• 7:29
  Speaker 1: And remember, guys, this isn't AI necessarily doing this.
• 7:31
  Speaker 2: This essentially is intermediaries that are using old social engineering
• 7:37
  Speaker 2: tactics to be able to intercept these devices and put
• 7:40
  Speaker 2: them in, which of course causes this problem. And the
• 7:42
  Speaker 2: problem is it's like a needle in a haystack. You
• 7:44
  Speaker 2: don't know which ones are affected. So it really affects
• 7:47
  Speaker 2: the overall performance, I think, of Ledger. All right, so
• 7:50
  Speaker 2: Ledger came out with another statement, also an update from
• 7:53
  Speaker 2: the CryptoBullets investigation. But remember also, this is the second,
• 7:57
  Speaker 2: or now is the second one with the media markets,
• 8:01
  Speaker 2: investigation now that's going to be underway.
• 8:03
  Speaker 1: All of this happening right now as we speak.
• 8:06
  Speaker 2: And of course, the Ledger CEO, Pascal Gauthier, came out
• 8:11
  Speaker 2: doing a little bit of, I think, crowd control or
• 8:15
  Speaker 2: at least damage control to a certain extent. I think
• 8:17
  Speaker 2: the problem here is going to be how does this
• 8:19
  Speaker 2: affect Ledger overall. And let me know what you guys
• 8:23
  Speaker 2: are doing for a crypto wallet, the process that you're taking,
• 8:26
  Speaker 2: because there's people out there right now that have completely
• 8:28
  Speaker 2: abandoned the hardware devices and are starting either one to
• 8:32
  Speaker 2: move back into exchanges, software wallets, or projects like Tangium.
• 8:36
  Speaker 2: Let's go over to Ledger's $ 4 billion IPO. This was
• 8:41
  Speaker 2: tripling their 2023 valuation. Now, I think this starts to change.
• 8:45
  Speaker 2: And I am concerned that we are going to see
• 8:47
  Speaker 2: this across a that are not even crypto-oriented is that
• 8:51
  Speaker 2: we're going to start to see cyber attacks and issues
• 8:55
  Speaker 2: occurring that could start to affect not only what we
• 8:58
  Speaker 2: saw in France in terms of infrastructure around food and
• 9:01
  Speaker 2: all sorts of devices, I think it now gets into
• 9:04
  Speaker 2: the point where it hits the S & P 500.
• 9:06
  Speaker 1: So be on the lookout.
• 9:07
  Speaker 2: Now, so much so that they have OpenAI going out
• 9:10
  Speaker 2: there putting a $ 1 billion fund behind cyber defense for
• 9:15
  Speaker 2: water utilities and community banks. Now, some of this may
• 9:18
  Speaker 2: be PR. Let me pose one more question. Let's go
• 9:21
  Speaker 2: back to that headline right there.
• 9:23
  Speaker 1: And let's just reread this for a second.
• 9:25
  Speaker 2: OpenAI puts a billion behind cyber defense. And they target
• 9:29
  Speaker 2: two areas here, water utilities.
• 9:31
  Speaker 1: And community banks.
• 9:32
  Speaker 2: Now, community banks seems like a very convenient statement there.
• 9:38
  Speaker 2: When you have what we have seen in the past
• 9:40
  Speaker 2: two years, the big banks saying that community banks aren't capable,
• 9:44
  Speaker 2: this is where stablecoin and dollar flight.
• 9:47
  Speaker 1: Is going to occur.
• 9:48
  Speaker 2: Is this just something that's going to continue to push
• 9:51
  Speaker 2: more and more people into centralized systems out there?
• 9:56
  Speaker 1: Pay attention, guys. It's not your money if you put
• 9:59
  Speaker 1: it in a bank.
• 10:00
  Speaker 2: Just to give you an example of where these hot
• 10:02
  Speaker 2: zones are, you'll notice right here is Japan, flashing red
• 10:08
  Speaker 2: right there. You'll notice it right there on the hot
• 10:10
  Speaker 2: zone maps here on Radware. This is the live threat
• 10:13
  Speaker 2: map for cyber attacks. Next up, you've got France and
• 10:16
  Speaker 2: Germany also being hit. And then you have the United
• 10:20
  Speaker 2: States also flashing red in terms of web attacks that
• 10:24
  Speaker 2: are starting to accelerate. Okay, so you can kind of
• 10:28
  Speaker 2: see this is a challenge that I think the industry,
• 10:30
  Speaker 2: when I say industry, business is going to face in
• 10:34
  Speaker 2: a big way.
• 10:35
  Speaker 1: So what does Wells Fargo do?
• 10:37
  Speaker 2: Well, they go out right in the middle of all
• 10:38
  Speaker 2: this and say they're going to go in and prepare
• 10:41
  Speaker 2: for a potential crypto stablecoin opportunity in the U.S., I
• 10:46
  Speaker 2: implore that some of these banks who are not ready,
• 10:49
  Speaker 2: Wells Fargo is not ready for this, unfortunately. This could
• 10:53
  Speaker 2: give crypto a bad name. If we see a major
• 10:55
  Speaker 2: bank take a hit, in some cases, I wonder if
• 10:59
  Speaker 2: that's constructed into some sort of narrative. These are the
• 11:02
  Speaker 2: kind of things I'm watching very closely, and I do
• 11:04
  Speaker 2: not agree. I don't think banks should be doing this.
• 11:06
  Speaker 2: It should be tuned into companies like Circle. even Tether
• 11:10
  Speaker 2: and other stablecoin companies that really understand this. And then
• 11:12
  Speaker 2: the neobanks that have been operating in this understand the
• 11:15
  Speaker 2: security layers that need to be there. Now, Bill Gates
• 11:18
  Speaker 2: came out, and it's kind of interesting because I don't
• 11:22
  Speaker 2: often agree with him, but I might agree with him
• 11:25
  Speaker 2: on this.
• 11:26
  Speaker 1: Take a look.
• 11:27
  Speaker 5: The front that we'll probably see most dramatically in the
• 11:31
  Speaker 5: next year is cyber attacks, because there there's a known
• 11:36
  Speaker 5: business model. Are you create a disruption that changes something
• 11:41
  Speaker 5: in the stock market or some betting thing that you
• 11:45
  Speaker 5: go and do. The real danger right now is not
• 11:49
  Speaker 5: the AIs getting out of control. We need to work
• 11:52
  Speaker 5: on that, but that's years away in terms of the big.
• 11:58
  Speaker 1: Impact that might have.
• 11:59
  Speaker 5: It's really bad people using AI, particularly in AI where
• 12:05
  Speaker 5: you can take out all the safeguards. We put in
• 12:08
  Speaker 5: safeguards to try and avoid you doing cyber attacks. But
• 12:12
  Speaker 5: right now, you're allowed to take all those safeguards out.
• 12:17
  Speaker 5: That's where over the next year, primarily in the Siberia,
• 12:21
  Speaker 5: we are going to have a lot of negative surprises.
• 12:25
  Speaker 8: Sam Altman, it sounds like, would suggest that you are
• 12:28
  Speaker 8: falling into the trap of doomerism.
• 12:30
  Speaker 1: How would you respond?
• 12:35
  Speaker 2: Point being here, guys, is that this, I think he
• 12:40
  Speaker 2: is right on that. I do think we are going
• 12:42
  Speaker 2: to deal more with on a cyber warfare level than
• 12:44
  Speaker 2: we are right now directly with AI actually becoming, you know,
• 12:48
  Speaker 2: killer robots. But it just puts something I think out
• 12:51
  Speaker 2: there that many of you need to be aware of.
• 12:53
  Speaker 2: And that is that sometimes you just overextend what you're
• 12:57
  Speaker 2: doing online without any security at all, because you've kind
• 13:00
  Speaker 2: of given up privacy to a certain extent.
• 13:03
  Speaker 1: And what I would.
• 13:04
  Speaker 2: Suggest to any of you is, one, of course, get
• 13:06
  Speaker 2: a really good VPN. Two is get off of Gmail.
• 13:09
  Speaker 2: Get off of these centralized mail servers. Get into something
• 13:12
  Speaker 2: that starts to protect you. Even go into secured third-party
• 13:17
  Speaker 2: messaging apps. I mean, there's several of those out there, Signal, Threema,
• 13:21
  Speaker 2: all of those for super secure. Because sometimes when you're
• 13:24
  Speaker 2: transmitting just messages that you think are not being watched
• 13:27
  Speaker 2: or pulled in, all of that kind of data, is
• 13:31
  Speaker 2: a target vector for a cyber attack. And that's when
• 13:34
  Speaker 2: we start to see social engineering take place like what
• 13:37
  Speaker 2: we see right now in Japan, where it's really starting
• 13:40
  Speaker 2: to affect just general everyday citizens.
• 13:42
  Speaker 1: So think of that.
• 13:43
  Speaker 2: Jumping back to Japan, because there's a lot of crypto updates.
• 13:46
  Speaker 1: That are underway here.
• 13:47
  Speaker 2: One of them, as you guys know, we had Backpack
• 13:49
  Speaker 2: on not too long ago. They have just announced a
• 13:52
  Speaker 2: new hire as head of strategy and corporate development in
• 13:56
  Speaker 2: Backpack of Japan. This means that they are underway. A
• 13:59
  Speaker 2: few have navigated the Japanese crypto regulatory landscape as extensively
• 14:03
  Speaker 2: as this.
• 14:04
  Speaker 1: Guy who they got from Kraken.
• 14:07
  Speaker 2: Remember, Backpack is one of the Mika regulated oriented exchanges
• 14:11
  Speaker 2: that is, I think, maybe next generation. So pay attention
• 14:14
  Speaker 2: to what Backpack is doing there. Further into it, if
• 14:17
  Speaker 2: you just look at what Backpack's been doing on the charts,
• 14:20
  Speaker 2: right there is the one year, guys. This has been
• 14:22
  Speaker 2: something that has absolutely exploded. I'm interested in this one
• 14:27
  Speaker 2: only in the sense that it does something that in
• 14:30
  Speaker 2: many cases, yes, there's KYC.
• 14:31
  Speaker 1: So I'm going to get that in the comments. I
• 14:33
  Speaker 1: understand that.
• 14:33
  Speaker 2: But the point is, is it's a next generation KYC
• 14:37
  Speaker 2: that I think will replace how banks and maybe even
• 14:39
  Speaker 2: centralized exchanges are going to operate.
• 14:41
  Speaker 1: So pay attention there. Etho also on the move here.
• 14:45
  Speaker 2: On-chain IP asset and license registries, now a new proposal
• 14:50
  Speaker 2: out there, ERC-8432. One note right here is that this
• 14:54
  Speaker 2: is Sonium right there. Let me kind of zoom in
• 14:56
  Speaker 2: on that for you. And they are supporting this. So
• 14:59
  Speaker 2: obviously Sonium, Sony, one of the biggest IP holders out there.
• 15:03
  Speaker 2: And what it does for you is very critical.
• 15:06
  Speaker 1: Look at this. It's bigger than you think.
• 15:08
  Speaker 2: Sonium is pushing IP beyond simply putting assets on chains.
• 15:12
  Speaker 2: These are the things that are going to be oriented
• 15:14
  Speaker 2: within 8432. Creators define the rights. Licensee becomes readable on chain.
• 15:19
  Speaker 7: Huge.
• 15:20
  Speaker 2: And then agents can now understand what they're allowed to use.
• 15:23
  Speaker 2: This is a big deal because this has been one
• 15:26
  Speaker 2: of the biggest concerns for IP holders out there is
• 15:29
  Speaker 2: that agents are just going to run amok and utilize
• 15:31
  Speaker 2: protected IP material. And this may be the key. And
• 15:35
  Speaker 2: this is all happening on Ethereum. So another good benefit
• 15:39
  Speaker 2: for what's going on within ETH.
• 15:42
  Speaker 1: This is another one. Big concern right here with midnight. This,
• 15:46
  Speaker 1: of course, related to Cardano.
• 15:47
  Speaker 2: This could supercharge adoption in Japan with private payment for POS.
• 15:52
  Speaker 2: Point of sale and how it's integrated into the JPY
• 15:56
  Speaker 2: coin is very critical because Japan is making major moves
• 16:01
  Speaker 2: to try to get adoption on that. I'll show you
• 16:03
  Speaker 2: that in a second. Charles Hoskinson was out there, of course,
• 16:07
  Speaker 2: doing something very specific to Japan, which was creating essentially
• 16:11
  Speaker 2: a new smart contract called Night Frames. So going directly
• 16:16
  Speaker 2: at payments in Japan, pretty big deal in terms of
• 16:20
  Speaker 2: what this could be. Let me show you something, though.
• 16:22
  Speaker 2: This you have to go in and actually convert this
• 16:25
  Speaker 2: to English to understand what they're doing. But this is
• 16:28
  Speaker 2: happening right now. This is like the FTC, the Fair
• 16:31
  Speaker 2: Trade Commission in Japan. And what they're looking at is
• 16:35
  Speaker 2: activity and use of stable coins in point of sale.
• 16:38
  Speaker 2: So cashless payment market. If you look at some of
• 16:41
  Speaker 2: the things I want to highlight, one is this right here.
• 16:43
  Speaker 2: We've received concerns from participating stores that giving preferential treatment
• 16:48
  Speaker 2: to JPYC payments may result in violations of the merchant
• 16:52
  Speaker 2: regulations and And there have been many instances where they
• 16:55
  Speaker 2: have hesitated to implement preferential treatment. So let me kind
• 16:58
  Speaker 2: of explain this for you. You're going out and you're
• 17:01
  Speaker 2: getting a Starbucks, right? Visa goes out there and says, hey,
• 17:04
  Speaker 2: you need to use the dollar instead of USDC, if
• 17:07
  Speaker 2: that were the case.
• 17:08
  Speaker 1: Here it's JPYC.
• 17:10
  Speaker 2: And instead, Visa says, hey, you can't do that. You
• 17:13
  Speaker 2: can't give benefits to your customers because of this right here. Look,
• 17:17
  Speaker 2: they can confidentially implement preferential treatment measures such as discounts,
• 17:22
  Speaker 2: free shipping, for customers who use JPYC. So that means
• 17:26
  Speaker 2: that these retailers are out there trying to actively move
• 17:29
  Speaker 2: to that system. Further into the article was this right here.
• 17:33
  Speaker 2: If they don't comply, and I'm talking about Visa type
• 17:36
  Speaker 2: of companies, these payment network rails, if they don't comply,
• 17:40
  Speaker 2: product could become an antitrust issue.
• 17:43
  Speaker 1: So think about that.
• 17:44
  Speaker 2: You now are dealing with a battle between the point
• 17:48
  Speaker 2: of sale and the type of payment that you can
• 17:52
  Speaker 2: actually use.
• 17:52
  Speaker 1: Because they want, guess what? They want those merchant fees.
• 17:55
  Speaker 2: This is something we've talked about at an extent, I think,
• 18:00
  Speaker 2: maybe more than.
• 18:01
  Speaker 1: Most shows out there. But we talk about it a lot.
• 18:03
  Speaker 2: Because it is, I think at some point, going to
• 18:05
  Speaker 2: be an issue that's gonna be raised here, even.
• 18:07
  Speaker 1: Here in the US.
• 18:08
  Speaker 2: Here's Japan talking about JPYC and they're advancing it to
• 18:14
  Speaker 2: the masses.
• 18:15
  Speaker 1: Take a look.
• 18:16
  Speaker 9: I will deliver one yen. I delivered one yen. Oh no,
• 18:31
  Speaker 9: if it were JPYC, it would have been immediate. Packing
• 18:40
  Speaker 9: was unnecessary.
• 18:43
  Speaker 1: I understand, guys.
• 18:44
  Speaker 2: Maybe not into anime, but Japanese people are. And they're
• 18:48
  Speaker 2: doing it at a younger audience, which is the audience
• 18:51
  Speaker 2: that's using digital payments. More and more, this only affects
• 18:55
  Speaker 2: one thing, and that is Japan becoming a major sector
• 18:58
  Speaker 2: player in the market.
• 19:01
  Speaker 1: So why is all this important?
• 19:02
  Speaker 2: Well, here's a good example of it right here. This
• 19:04
  Speaker 2: was on Kaichain. They were talking about the regulated yen
• 19:07
  Speaker 2: already in circulation. Next, it needs somewhere to trade. That
• 19:11
  Speaker 2: means the rest of Asia. Here's an example. Ratio FX
• 19:16
  Speaker 2: signed an MOU, memorandum of understanding, with JPYC. This is
• 19:22
  Speaker 2: the issue of Japan's FSA-approved JPY stablecoin, Circle.
• 19:25
  Speaker 1: Think of it that way.
• 19:26
  Speaker 2: To explore collaboration in stablecoin, FX, cross-border payments, and digital
• 19:33
  Speaker 2: asset infrastructure. Basically, setting up all of Asia to start
• 19:37
  Speaker 2: to utilize this big deal going forward. Here's a video
• 19:41
  Speaker 2: that explains it a little bit more. This is John
• 19:43
  Speaker 2: Chu going at it.
• 19:44
  Speaker 1: Take a look.
• 19:45
  Speaker 7: There have been no frameworks or legal guidelines around what
• 19:49
  Speaker 7: local stablecoins can and can't do. But once those are
• 19:52
  Speaker 7: in place, I think we will see a lot of
• 19:54
  Speaker 7: transition of existing stablecoin infrastructure in Asia move to local
• 19:58
  Speaker 7: stablecoins because there's a lot of cost savings, especially for
• 20:02
  Speaker 7: that last mile aspect of on and off ramps.
• 20:04
  Speaker 9: Who's going to win the stable coin race on this
• 20:06
  Speaker 9: side of the world?
• 20:07
  Speaker 7: I've seen a lot of movement shift away from, I
• 20:11
  Speaker 7: have to be careful, but shift away from Singapore to
• 20:13
  Speaker 7: Hong Kong. Definitely Hong Kong is well positioned to become
• 20:16
  Speaker 7: the digital asset hub of Asia, largely because Hong Kong
• 20:21
  Speaker 7: is also the settlement gate for mainland China. So yeah,
• 20:25
  Speaker 7: I think Hong Kong will come out like pretty strong
• 20:28
  Speaker 7: once all the local stable coins are out there.
• 20:30
  Speaker 1: It's important because you have to look at Asia individually.
• 20:33
  Speaker 2: And Japan as essentially an epic battle that is occurring
• 20:37
  Speaker 2: right now.
• 20:38
  Speaker 1: Who's going to control the Asian market?
• 20:40
  Speaker 2: And the reason is Hong Kong is now going to
• 20:42
  Speaker 2: license crypto brokers, custodians, advisors, and it's really setting up
• 20:48
  Speaker 2: to overtake the entire market, which is what we missed
• 20:52
  Speaker 2: here in the U.S.
• 20:53
  Speaker 1: Because of political.
• 20:55
  Speaker 2: Corruption, not getting clarity act through or not getting a
• 20:59
  Speaker 2: framework through that would be acceptable for many of these
• 21:02
  Speaker 2: kinds of people in the finance sector.
• 21:05
  Speaker 1: That is the problem.
• 21:06
  Speaker 2: And now Hong Kong laying up into a position where
• 21:09
  Speaker 2: they could start to challenge Japan, of course, putting up
• 21:12
  Speaker 2: a fight here, I think, and going forward as well.
• 21:14
  Speaker 2: So watch that one very closely. And all of this
• 21:17
  Speaker 2: boils down to one other thing. Here's a major chain
• 21:21
  Speaker 2: doing a full blown event, not in Hong Kong, in China,
• 21:26
  Speaker 2: It all starts this week.
• 21:27
  Speaker 1: This is Solana.
• 21:28
  Speaker 2: And look at this, the cities. This is, again, not
• 21:32
  Speaker 2: Hong Kong. That's Shanghai, Hangzhou, Shenzhen, Beijing. All of those
• 21:37
  Speaker 2: are in mainland China. This is the country that banned
• 21:41
  Speaker 2: Bitcoin mining in 2021 and pretty much wrecked the market.
• 21:45
  Speaker 2: Is something happening now where we're starting to see a
• 21:48
  Speaker 2: battle brewing in the east?
• 21:50
  Speaker 1: Stay tuned.
• 21:57
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• 22:00
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• 22:03
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• 22:04
  Speaker 1: The link is in the description.