A pioneer in cryptocurrency, Jed McCaleb predicts the blockchain technology will revolutionize banking. A pioneer in cryptocurrency beginning with Mt. Gox, bitcoin exchange, Jed McCaleb is currently co-founder and Chief Technology Officer of Stellar Development Foundation which contributes to open source software.
On his LinkedIn page, Jed MeCaleb said he co-founded Stellar.org as a non-profit company because, “I believe that gaps and outdated infrastructure in the financial system limit the economic potential of the world.”
The focus of Stellar is to develop a cryptocurrency network for cross border payments with blockchain technology. Stellar strives to solve other issues as well. First that of protecting privacy using blockchain technology to protect data from being adulterated. Second, people can use currency that they are familiar with such as US currency and Euros. Stellar also offers their own cryptocurrency known as Lumens. Additionally, Stellar claims that transaction settlements will be conducted within less than 5 seconds. This is a fraction of the time bitcoin took.
According to the financial research firm, Autonomous Next, initial coin offerings (token sales) have raised over $9 billion dollars in four years. This has increased fraudulent fundraising activities. However, advocates insist this is simple proof that cryptocurrency is the future of fundraising.
The allure of token sales to retailers is that the money goes directly to the investors, possibly giving them a future platform and the hope to increase their investments.
Jed McCaleb expects all equity (including non-cryptocurrency such as stocks) to be digitized using a some form of blockchain technology within 10 years. Currently, there are several companies attempting to link digital tokens to traditional financial markets. Securrency, is a Maryland based company that had been working to allow the purchase of stocks with Bitcoin by investors. IBM currently utilizes Stellar’s platform with some large banks
Additionally, Jed McCaleb is an advisor for MIRI (Machine Intelligence Research Institute.)