Page 12 - May 2018 Disruption Report Flip Book

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Yermack: You might just get you priority as a customer. ...The airlines could do this and sell elite status or you know gold status.
I think that you’re going to see some innovation in the business and revenue models and that for the very big media companies having their own currency—especially since they’re multinationals—might be very attractive.
Galloway: It seems to me so ripe—it seems to me you want to attach it to recurring revenue, charge them so people feel like they can value it. Netflix feels perfect. Spotify Coin feels perfect.
Yermack: Yes, I gave this as an exam question in a course last year: Should Amazon issue Amazon coin? There are various pros and cons, including fact that Amazon you know it’s a big footprint in the U.S. markets and issues equity and wants to keep the SEC and the IRS happy. If they saw this as a method for tax evasion, it might get them in trouble in their mainline business. (The Crypto Economy, L2inc, 05/17/18)
Several cryptocurrencies are exploring obtaining banking and brokerage licenses
Coinbase and payment startup Ivy Koin have talked to U.S. regulators about obtaining banking licenses, a move that would allow the startups to expand the types of products they could offer. The crypto companies discussed a variety of topics, such as the firms’ business models, according to
a source. The companies may not apply for a bank charter, depending on whether they think the benefits of becoming a bank outweigh the costs.
“Since cryptocurrency business models are already modeled on crypto-fiat exchange, remittance, merchant payment processing, personal and business value storage, ATMs, and even escrow and lending, there’s a good business case for bringing all these services together under one umbrella,” said BakerHosteler’s Robert Musiala.
“FDIC insurance is the biggest reason [for crypto firms to seek banking licenses],” said Woodrow Levin, CEO of crypto asset fund 3.0 Capital. “Having access to FDIC insurance means being able to secure balances for customers; it’s a huge event from a marketing and customer-comfort standpoint.”
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