Fifth Era/Blockchain Coinvestors Update #4

Last week we examined the importance of President Ji Xiping telling the almost 1.4 billion Chinese that they must embrace Blockchain and make it an integral part of their futures. This week we have been impressed by the reactions around the world.

From US lawmakers formally asking the Federal Reserve to consider developing a 'National Digital Currency', to over 200 German banks calling for a 'Digital Euro' to numerous sources suggesting that anything other than quick action may lead to the loss of leadership in a global financial system that has relied for 70 years on the US dollar for its reserve currency. China has put the proverbial cat among the pigeons.

The importance of the Chinese announcements for those of us who are investors in blockchain companies building real businesses is much more fundamental than just the arrival of competitive sovereign backed digital currencies. We should now expect blockchain to be in the next Chinese five year plan, we should expect hundreds of billions of yuan to be invested in the technology and we should expect that globally we will need to complete the digital infrastructure - digital wallets, payment rails, exchanges and so on - that will be needed once these new digital currencies become a reality. Perhaps as early as 2020 in the Chinese case.

We continue to believe this is the ideal time to invest in blockchain companies building real businesses.

Interesting developments in blockchain:

Recent podcasts and webinar appearances:

We hope you find much to think about, and please reach out with any questions or comments.
 
Best wishes,

Alison Davis
Matthew C. Le Merle

Matthew Le Merle