Stellar founder Jed McCaleb says

[StoneDragon]

Stellar founder Jed McCaleb says most banks won’t use bitcoin

In an interview with Yahoo Finance, Ripple creator and Stellar founder Jed McCaleb poured just a little cold water on current crypto hype.

"The allocation of capital and resources is wild to watch, when these projects that have zero technical merit get millions of dollars," he said. "It seems like a big shame. Hopefully that will start to change. One of the nice things that comes with the market calming down—I still say it’s not a bear market—it means there’s less of that."

"Ninety percent of these projects are B.S. I’m looking forward to that changing. Things like Tron, it’s just garbage. But people dump tons of money into it, these things that just do not technically work."

McCaleb said that most private chains are problematic for the industry and will fail to grow past their early exploratory stages.

"I think it’s true that most financial institutions are not going to use bitcoin," he said. "But in my mind, what blockchain gives you is a public record that everyone can see, but they can’t change it. So parties can transact even if they don’t know each other. So you still need a public chain. It doesn’t need to be the bitcoin blockchain, but if it’s not a public chain, then you’re missing the point."

You can check out the rest of the short interview: https://finance.yahoo.com/news/crypto-pioneer-jed-mccaleb-most-105604729.html?guccounter=1

[wry]

He is exactly right.  Bitcoin is all about being a decentralized payment system, that is the opposite of what banks do.  Maybe, one day some of them will allow deposits of crypto, but even that I doubt about due to money laundering concerns.  For example I was all excited that Robin Hood allowed the trading of crypto, but you can't deposit your crypto to trade it!  

I have a lot of respect for McCaleb.  He walked away from Ripple when they went all corporate and made Stellar which is a much more idealistic version of ripple.  It's the perfect example of exactly how I'd like to see the crypto space innovate - if you think something is crap, cool, go make something better. 

He's an interesting dude and Coindesk picked him as one of the ten most influential people in crypto for 2018!  You can read more about him here:https://www.coindesk.com/coindesk-most-influential-blockchain-2018-jed-mccaleb

Finally, remember the rules for the news section require you to give your perspective / comment on the article. 

[williamshennie9]

I understand banks not wanting to adopt crypto due to money laundering concerns. However, I think that they will have to adapt their systems at some point if they don't want to be left behind. So I agree with McCaleb, the main idea for crypto is for it to be decentralised, not controlled by an authority, so props to him for leaving ripple