On July 12, 2024, our topic at Lincoln South Rotary Club was Cryptocurrency by Srini Ampavati, Director and Portfolio Leader at PayPal.
Srini laid the ground work talking about human made currency - bills, coins. That form of currency is widely accepted as a viable form of payment. The coins and bills advanced to checks and then credit cards. And eventually some online options such as Venmo and PayPal became popular. But, it is all based on the value of the human made currency. The value of the currency and the management of transactions is regulated by the government.
Cryptocurrency is 100% digital. There is no printed version of the currency. Anyone can use it and the currency can be sent anywhere in the world.
There is no government control - the value is based on demand.
Though cryptocurrency started as a way to avoid banks, bank charges and their control, it has turned into an investment opportunity. Anyone can create a type of crypto currency - build up the excitement and get it trending. The next thing others see it as the latest hot investment. And, again, the value is based on demand.
Srini explained that the transactions are tracked on a digital distributed ledger. That ledger is maintained with very high security on a number of computers. There is no one person managing it - there is not a monopoly. One of the advantages is that it is decentralized so no one body controls the value.
Cryptocurrency has been accepted by 100s of 1000s of people as payment. But most people look at it as an investment since the value is based on demand. To use Cryptocurrency you need a crypto wallet. With this wallet you have tools to buy and sell and keep track of your balance.
Srini mentioned that the description to this point rings a lot of bells about security and risk - there are no regulations. As he pointed out, anyone can create Cryptocurrency and create a trend to get people to purchase it. He also pointed out that with all of the computers connected there is a risk of a computer bug or ransomware breaking down the system.
Srini explained that the term mining, when referring to Cryptocurrency, is the process of managing the transactions through the digital distributed ledger - securely.
He said that the development of this has provided the background for work in many other arenas that require data sharing in a secure environment - such as health records. Protecting information across a number of computers is important to protecting our personal information. The design of the Cryptocurrency digital ledger has provide some technical developments.
Srini share that the concept of Cryptocurrency is a concern to some because of the lack of regulation. Some countries have banned Cryptocurrency including China, Egypt, Iraq, Morocco, Nepal, Qatar, Algeria, Bangladesh, and Tunisia (source - internet search).
But, Cryptocurrency is not likely going away.
Many countries are trying to find ways to regulate it. Some countries are looking at developing a government controlled Cryptocurrency to compete with the private providers.
He also shared that some providers are providing a more stable investment by basing the value on some external value such as US Treasury Bonds. This type of Cryptocurrency is called Stablecoin.
BIO
Srini Ampavati is a Director and Portfolio Leader at PayPal, where he leads the development and management of innovative products and programs for internal customers. With over 25 years of experience in product and strategy, he has a proven track record of transforming complex portfolios into efficient and effective solutions that create value for PayPal and its users. His areas of expertise include risk management, fraud detection, customer service, and data analytics.
Srini is a servant leader who cultivates a culture of growth and collaboration within his global cross-functional teams. He is passionate about building products that solve real problems and align with the company's mission and values.
He is also an avid golfer who enjoys spending time with his family on the green. When he is not working or golfing, he likes to explore new outdoor activities with his wife and his son Leo.