The Blockchain Revolution: Decoding Digital Currencies

Keynote Presentation by Fernando Martin

Interest in cryptocurrencies and decentralized finance spawned by Bitcoin and blockchain technology shows no signs of slowing. During a March 2014 Dialogue with the Fed event, the Federal Reserve Bank of St. Louis was the first central banking organization to sponsor a public lecture on cryptocurrencies and blockchain. Since then, economists and research associates at the St. Louis Fed have published numerous articles and explainers on these topics.

In this presentation, Fernando Martin, economist and assistant vice president at the St. Louis Fed, discusses decentralized finance, blockchain technology and digital currencies. Martin is the co-author of “The Blockchain Revolution: Decoding Digital Currencies,” the feature essay from the St. Louis Fed’s 2021 annual report.

View presentation slides (PDF)

Segments include:

1. Cryptocurrencies & Blockchain (3:17)
• We Already Have Digital Money
• The Double-Spend Problem
• Communal Record-Keeping
• How Blockchain Technology Works
• Front-End: Cryptoassets Are Permissionless
• Back-End: Database Management
• Cryptocurrency Applications
2. Stablecoins (25:20)
• Stablecoins and Financial Stability
3. Decentralized Finance (DeFi) (31:26)
• Smart Contracts
• Smart Contracts vs. Traditional Finance
• Asset Tokenization
• Decentralized Autonomous Organizations
• How Are Cryptoassets Actually Trades?
4. Central Bank Digital Currency (CBDC) (39:14)
   • Why Create a CBDC?
5. Conclusions (45:39)
• Blockchain Applications
• Ability to Write History is a Tremendous Power

Welcome and Introduction

Nikki Bommarito, assistant vice president in External Engagement and Corporate Communications, gave opening remarks.

Panel Discussion and Audience Q&A

Following the keynote presentation, Martin was joined by his co-author David Andolfatto for a Q&A session.