and we could not be in new york without calling upon our t. correspondent trinity charles who's done such a great job not just for boom bust but for archie american general trinity thank you for being with us here at nasa thank you for having me so we are here in one of the most influential financial hubs not only in the world but in new york the nasdaq just right behind the screen that you see is actually there a market site but what's interesting about the nasdaq is the fact that no trading actually goes on inside this building it's actually more of a television studio all the trading happens closer to washington d.c. in maryland than a lot of people don't know that yet happens in bethesda not too far from us i've done a bunch of t.v. interviews in here and it's sort of freaky actually the they do ring the bell here where and the there's a podium where the companies that are listed if it comes out of the poor rises up

on the floor and everybody sits around there and claps but the trading is not there and then it goes down into the floor and then they turn it into as you say trinity a television studio but tell our viewers what actually goes on here is not just a regular stock exchange it's very specific now it is it's mostly technological companies the nasdaq is actually an acronym for the national association of securities dealership automated quotation that's a not all but that's what it stands for but a lot of people don't know that it's all on financial companies it's strictly you know technological companies we're talking no banks no insurance companies we're talking about. media technology software hardware if you think of all the recent technology companies you're going to think of the nastier and think about the biggest of the big tech crunch rightly exactly we have a lot of big names that were talking about alphabet which is the parent company to google we're talking about. microsoft apple amazon those are just name

a few the list goes on and on and like i said when you think of them or the newer technology companies you're going to think of it as that and when talk about stock exchanges we can go back to the rice exchange in tokyo you know hundreds of years ago in amsterdam in the sixteen hundreds the relative to those sorts of things nasdaq itself is also fairly new on the block it is fairly new it was actually founded in nineteen seventy one so it's round forty seven years old but it's really gained popularity especially with the tech boom in the dot com for the last few decades and it's only going to become more and more important as these technology companies become more popular one of the things i think that people may not also know about technology is that most of these trading that the trading that takes place was the first one that was totally electronic and so now most exchanges are electronic but the new york stock exchange in lower manhattan you reported there for boom bust before they still have a floor operation they still have people on the floor i spoke with tom parleyed of

the president and they're going to keep that contingent of actual floor traders they think having floor traders actually makes trading more efficient a particularly at bottle times the opening of the markets in the closing of the markets but ninety plus percent of trades take place electronically and you know people there are times when they trade at four hundred to five hundred times per second this is just crazy right it's crazy a lot of trading goes on here at the nasdaq and you know it's actually there that can make it six names in the whole world and of course the first one is the new york stock exchange which is a two minute will be down around there tomorrow and around here in times square pretty trying to thank you so much for joining us great to see you in person was much easier and more with blown by us. and we've come off of times square. we're in the r.t.

america studio just a few blocks away and we are joined by gary de wall of cat mutual law firm he as i said earlier in the program he's not just a lawyer he's also a professor and he knows pretty much everything you ever want to know about regulation and finance and he advises both buy and sell side clients gary thank you for being here we know that the. chairs of the c f.t.c. where you and i both worked in the past and the f.c.c. chair of the f.c.c. also jay clayton were before the senate banking committee not too long ago and they spent a lot of time talking about digital currencies what's your take on that hearing well i think it was a pretty interesting hearing and i think you can paraphrase them old philosophers to basically get the bottom line of what each what each individual said i think therefore i am that was they cart but i think chrystia kahlo his view was it's there so therefore i have to deal with it i think jay clayton was the only thing we have to fear is fear itself his message was for main street investors we have to

fear everything especially crypto currencies i think you sir are dramatic contrast in the way that both individuals and their agencies are approaching cryptocurrency is right now and i think the most interesting thing from my perspective was christine carlo basically saying there's gaps in federal regulation they need to be filled in and make the currency safer fariba the and frankly jake clayton agreed with that perspective i think a couple of things about that i think i agree with you i think you have the right right take on it one mr g. and carlo chairman of the c f.t.c. he's been pretty out there for a couple years actually talking about how. the digital space should be developed and i think he. likened it to how the internet was developed so i mean much more i think even the f.c.c. hasn't to see if d.c. is sort of been out there trying to share information and let people know in this space what they should and should be doing i think that's right i think to see if he took an early view that this is out there there's nothing we can do to stop it really. so we might as well figure out what the problems are they embrace virtual

currencies as a commodity and they early on to exercise jurisdiction over derivatives based on commodities as well as using their anti-fraud authority to root out potential bad guys in this area so i think the sea of the sea has taken a very very pragmatic view from the beginning i think it's very careful to say they haven't a dos the product but they simply recognize it's there and it has to be dealt with it can't be ignored it's good to send out warnings to investors they've done a lot of lot of education into absolute commended for that but they've also brought some very very important for some cases frankly now let's just move to the s.e.c. a little bit and chairman jay clayton who i think is also doing a really good job in trying to ensure that the agency doesn't just say no you can't do things things no you can't offer digital currency eat but he is trying to i believe try to figure out a way forward so it's not just no you can't do things he's trying to go forward but

there are a couple of interesting moments in that hearing particularly with senator elizabeth warren from massachusetts about i.c.a.o. talk about that a little bit sure i mean the i think the f.c.c. is struggling with with the with the with the instruments the digital tokens that issued in connection with i c.e.o.'s and i should have said for our free with the initial coin offer which they may or may not know rect initial coin a phrase that i was going to explain that basically from the ses perspective initial quite offerings are very much like initial public offerings their their their their their their new issues of security type instruments and you know the industry the crypto industry tries to divide these these instruments into those that constitute securities and those that constitute utility tokens and i think the f.c.c. has been expressing its skepticism about that approach it hasn't come out with a definitive ruling but it has said that the extent that a token represents a security therefore it needs to be issued in accordance with with with the rules deal. with new securities or a valid exemption and they've brought

a couple of enforcement actions now to back that view up but i still think that the issue is it's really hard to determine what is a virtual currency meaning something like a fee currency but obviously not backed by a state completely under the jurisdiction of the c. of the seat the extent there's a derivative based on it what constitutes a security and what constitutes a utility token i think that the regulators really need to clarify this to to to to help the investing public really understand what's out there to me and they look at awful lot like securities and and if there is a. the only price that trading these sorts of things are at the sea f.t.c. at the chicago board options exchange and the chicago mercantile exchange trading futures on bitcoin. but at some point do you think we are going to have regulated exchanges gary good now we've got exchanges out there coin based or as others are throughout the world that trade these digital currencies so it's one

thing to say will we at some point have registered coins that are approved by the f.c.c. it's another thing to say ok if they're approved as a scaredy where the heck are they traded are they traded still on these quote unquote dark markets or are they going to be traded in the future do you believe on regulated exchanges like nasdaq where i was just a little bit ago of going back to or at n.y.s.e. for example but it's a very very good question i think that's one of the issues that christian college brought up before the senate has to set a testimony is that there is these gaps and they should be addressed but let me say a couple things on that one to day the exchanges out there the spot exchanges are regulated in the united states these spot exchanges have to be are subject to the financial and enforcement crimes network of the department of treasury they're often licensed by state money transmitters and if they want to do business from or to new york state they. need

a bit license for the new york state department financial services two weeks ago the new york state department financial services issued new guidance and they said that if you want to operate from or or to new york residence we're going to expect you to have a bit more than just a m l type procedures we're going to expect you to have good cyber security would expect you to monitor fraud and manipulation so that they try to in fact develop some guidance that suggested that these exchanges have to do more than just exist you are the guy who knows that all that stuff in detail boyd thank you for sharing it with our viewers we hope you'll come back again gary to wall off from kat mutual thanks for being here thank you always good to see you great. time now for a quick break but stick around because when we return we have an exclusive interview with michael dell because he's the lead business reporter at coin desk which is the preeminent publication around the world filling with water she's a digital currency i'm going to ask you what is the thing most important we don't

know plus i'll give you a little tour of times where maybe we even have a glimpse of the naked cowboy a bunch of mickey and minnie or maybe the statue of liberty but right now here are the numbers at the closing bell. is an economy that's been created by financialization of everything outsourcing manufacturing to countries like china totally ignore asian and just made that word up means to ignore something. of your local infrastructure build now trump saying we want to do infrastructure we've got to go borrow a trillion or two trillion dollars from whom our biggest creditor that would be china and china is owning all the cars in the twenty second century. america can't

even get from point a to point b. . apply for many clubs over the years so i know the game inside out. football isn't only about what happens on the pitch to the final school it's about the passion from the fans it's the age of the super money just kill you narrowness and spending two hundred and twenty million on one player. so it's an experience like nothing else on to because i want to share what i think what i know about the beautiful game played great so one more chance with. the base this minute. about your sudden passing have only just learnt for yourself and taken your last term. to you as we all knew it would i tell you i'm sorry.

so i write these last words in hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each other. but then my feelings started to change you talked about more and i can't was again still some are fond of you those that didn't like to question are are. they secretly promised to never be like it's one does not leave a funeral the same as one enters my mind it's consumed with this one to. speak to us there are no other takers. claimed that mainstream media has met its maker. and we're back and we're really pleased to be joined by michael dell castello he's

the lead business reporter at coin desk which is a preeminent publication dealing with these sorts of issues regarding digital currency is on the block j. michael welcome and thank you for being with us it's a pleasure thank you ok let's take this one hundred thousand feet yes what's the most interesting thing you're seeing in this space bizarrely the most interesting thing that i'm watching right now is supplied chain finance that's different from supply chain management which we hear talked about a lot where distributed ledger technologies like the block chain is being used to prove the origin point and movement of products and what we're talking about with supply chain finance on a block chain is being able to simultaneously pay every level of a supply chain. logistics of a moving something a product a physical product from one place to another and tracking that well the finance aspect of that is actually in the payment so what happens now is if you go to

a big factory like foxconn that is making cell phones they will receive the bulk of the payment for the product and that money slowly trickles down to every layer of the supply chain taking weeks and sometimes months to finally hit the people at the very bottom of the supply chain and we're seeing some interesting work actually foxconn and p.t.p. lending platform d.n. wrong are working together to reimagine the way the supply chain finance works so that the lowest level of the supply chain is actually being paid at the same time as everyone else not only would remove the need for the middlemen that are making money in between each of those transactions but make sure that the people at the lower end of the supply chain the farmers the miners who are creating the raw materials that eventually go into these products aren't being forgotten or delayed in payment you know i wonder if that should be we talk about block chain and in

general it may be the moral to the block change story or the montra if you will is getting rid of the middleman or the middle person makes sense really i mean that's yet about i would agree i think that the innate understanding of a middle man and in today's day and age or at least a couple of years ago was definitely relates to finance so it was it was a no brainer that the first application of blocks and technology would be money cryptocurrency but there are a lot of other exchanges of value out there that aren't necessarily reliant on money and we're seeing new cutting edge imaginative applications of this technique . to remove middlemen across a wide range of value exchanges yeah i've spoken with people and i imagine you've done stories on this that want to track the movement of diamonds.

and even some precious metals so there's a number of different applications outside of traditional payment systems let me ask you though the talk about the large financial institutions who really have been and there's nothing wrong with that they've been important to the development of the world the development of our country in the us here serving as the lenders. but they really are the middle people in a lot of these trends yeah so are they on the defensive with regard to digital currencies or are they do they have some sneaky strategy there where they're going to have some you know internalized banking financial system ledger as opposed to a distributed public ledger which would truly get rid of the middle people great question i think with the big first of the short answer to question is they are involved they are exploring and there are a couple of instances of them exploring using cryptocurrency publicly which we can

talk about but to answer the first part of your question the big difference between . innovation that is being explored in the block chain space by banks and other financial institutions is that they are used to leading the drive towards those innovative products block chain and crypto currencies as unusual perhaps even unique in the fact that it was driven by the retail world that was driven from the ground up and so in a lot of ways these banks stock exchanges financial institutions generally speaking had their hand forced they were watching from a distance as other people were driving innovation which is unusual but it's as i said earlier it's not accurate to say the banks are not involved. some of it's self preservation to right i mean they don't they they don't want to lose. this is

a horrible term and i don't mean it in a negative what well you'd better not use if you wanted to they they they don't want to lose the source of the revenue so they can provide to find out thing that is important to our economy there i say that is part of our it is it is it is difficult to talk about because of the fact that their hands have been a lot of ways been forced to this innovation i think that. they were largely content with their role in the financial system and you're right they had to go into this in order to stay pertinent. but that's not to say that they aren't also willing participants or at least they haven't become willing participants some of the most exciting crypto currency experiments in the world right now some of the biggest banks in the world are in the room while they're happening quietly about those tell me about you think what are the leading financial institutions around the world that are maybe paying a little bit closer attention to this than the others and when i say closer

attention i'm talking about they're reaching in their pocket to maybe get their wallet so there's two there's two public examples that i'm happy to talk about and there are a lot of examples that are going on behind the scenes. report that we haven't read the stories that you can the future so the stuff that i can talk about publicly that has been publicly revealed i should say money gram is now using ripples x r p which is a sort of next generation crypto currency that is designed to increase the quiddity between global banking institutions. one of the earliest use cases was in cross border payments generally speaking the sending money from one currency to another x r p serves

a really potentially valuable place in doing that by freeing up money that is being stored in different accounts around the world just in case it's needed instead of keeping that money laying dormant. places like money gram can can use x. r.p. theoretically to cut out that that middle trends and it's got a lake of liquidity essential. what you're saying that can be used for that doesn't have to be it can be in held in reserve and then used to make the transaction and then they deal with whatever the the the difference between one currency and another currency ideas and flatten it out and then they get paid a little part themselves there i guess so there is there is still somebody making money in the middle here but it's different than the traditional financial institution and i think are there others out there there are another one that i think is really interesting is is what might be called a sister currency to x. r.p. which is lumen which is the currency that was created by

a company that was founded by one of the same people who founded triple stellar and stellar recently announced a partnership with i.b.m. which isn't a financial institution but i.b.m. powers some of the technology on the enterprise level that runs some of the world's biggest financial institutions that was a big deal because i.b.m. had been in the space for a while using what we call non trip a currency applications a block chain which is moving value around in other ways storing data in a distributed way but not necessarily using an actual crypto currency i.b.m. and stellar last year publicly talking about the potential use of lumen was it was a big deal and i think that it's sort of indicative of the fact that it's not just financial institutions that are starting to become increasingly comfortable talking

about crypto currency in public but technology companies as well are we could talk michael for a long time but we are running out of time i promised our viewers at the beginning of the show that i wanted to i was going to ask you about the biggest thing out there in this space that we don't know and maybe you'll have to do so. but you haven't written about there but what do you have for us ok so i think what would be most surprising to a lot of people is the degree to which some of the biggest banks in the world are in fact experimenting with crypto currency. again i have firsthand experience knowing that some of these banks are in the room advise ing observing and learning and reporting back to their superiors about some incredibly exciting cryptocurrency projects. we will be looking for you we'll be looking for michael

dell christiane's articles a coin desk and we can't wait to see them thank you so much for spend it was a pleasure mark thank you take care take care. and before we go a little bit about right here times square it's a place with more energy the most you can feel it just standing here coming up through my boots all around you this area used to be called long acre square it was renamed back in one thousand zero four when the new york times moved its headquarters to the times building it's now called one time square it's just a couple of blocks away from here and it is named after the new york times and when you hear times square it's the new york times after the one nine hundred twenty nine stock market crash this whole area was pretty beat up businesses moved out closed down went bankrupt and as they slowly businesses started to come back in they were really of a cd or nature some peep shows

a little bit of vaudeville shows some pawn shops and a lot of panhandlers that was pretty much the norm and it wasn't until the nineteen nineties that america's mayor rudy giuliani initiated a real cleanup effort here in times square and wow did they do a great job it really came back and take a look at this canyon of whites just amazing because. looking all around you can turn around slowly and there's seemingly an endless cascade of vibrant video of news feeds and of advertising for five stories tall even hiram looking probably fifteen story worth of lights there and speaking of that it really is a show here of course we will talk about shows we talk about broadway and broadway is like right there that's right way for broadway and forty third street and you could be at one of these local hotels and watch a different show every day for two weeks the lion king is right behind us school of

rock is is just around the corner there it's pretty amazing and it's not just theater shows there's plenty of movie theaters too and they're not just one or two screens for sixteen and twenty four multiplex theaters it's really incredible and speak about some of the anomalies also just down here a little bit is the naked cowboy the fellow that is in his white skippy's with his guitar strumming and his cowboy hat love to get a couple of bucks from you and there's probably more mini and mickey mouse's within a block of here than there are in disney world as a matter of fact when they rejuvenating times square they called it the disneyfication of times square it's really incredible a my favorite anomaly by the way is and i don't i don't see any right here now but is the statues of liberty so you'll find these folks that are on stilts oh they're big statues and they're dressed in the gallant summer the teal color of the rusted copper on the actual statue of liberty some of them are be dealt with with gold some of them will have

shades on glasses and all of these folks these different characters will be happy to take a selfie with you for a mere gratuity of a few dollars it's really a neat place to be and of course on new year's eve they have the ball that drops from here they've been doing that for years and there are close to a million people here in times square a million people right here. pretty nuts we are so happy to be here we will be here all week that is it for now but we hope you'll catch us on you tube at youtube dot com slash boom bust archie thanks again for watching c.l. later. there is now three hundred trillion dollars of of saleable wealth in the world today but now look at how much money we spent on the world the military. we just

talked about a few more billion up. save the lives of people around the world in doing to such a way that doesn't create dependency it was that much wealth in the united states that much well. the rest of the world is a nice usable for any person in the world today to go to bed hungry. where's the money for the sports the least you know because in most of the snowboarding one of them is one. beautiful yes good good new person talking a bushel so you know you put him over the i'm close but then this might be able to move him i do you know but the deal my mother goes with the star you know to please them. so from him you know will someday in cinemas a woman even split the. u.s.c.'s so just

a little. book of citizenship jhelum with someone in the field the most and showed some cool tools to the police but yes the people still the most of them so just to to go well what you could say yeah. that would usually little for the nation as we see when you do see chelsea that was telling me at some point that you know. told me it was a little bits of. it.

from exotic to toxic decades of environmental damage on a portuguese island in the atlantic locals fearing for their wellbeing as they continue to suffer increased cancer rates. the german tabloid newspaper is duped into running a bogus story about russian meddling in german politics one of the pranksters tells you how they did it. we knew how to feel. and what we did was we came up with a story that was techie like a spy and it was a. prominent conservative commentators in the united states claimed that being censored by twitter after a wave of accounts especially.