{"id":300088,"date":"2021-08-20T11:18:43","date_gmt":"2021-08-20T15:18:43","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=300088"},"modified":"2021-09-22T10:44:49","modified_gmt":"2021-09-22T14:44:49","slug":"patrick-byrne-sees-bank-blockchain-consortium-r3-as-an-attempt-at-regulatory-protectionism","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/patrick-byrne-sees-bank-blockchain-consortium-r3-as-an-attempt-at-regulatory-protectionism","title":{"rendered":"Patrick Byrne Sees Bank Blockchain Consortium R3 as an Attempt at Regulatory Protectionism"},"content":{"rendered":"

Permissioned blockchains\u00a0have been one of the biggest trends in\u00a0fintech\u00a0lately, and\u00a0R3\u00a0is the blockchain consortium that appears to have the largest amount of support from some the biggest financial institutions in the world. The firm has been met with quite a bit of skepticism in the Bitcoin community, with many of the digital payment system\u2019s supporters claiming that the blockchain does not make much sense without some sort of underlying token.<\/p>\n

Overstock\u00a0CEO\u00a0Patrick Byrne\u00a0was the final speaker on day two of\u00a0Blockchain Agenda San Diego\u00a0on Tuesday, and he shared his overall thoughts on Wall Street\u2019s entrance into the blockchain world. Although Byrne does not appear to be completely tied down to the Bitcoin blockchain, it\u2019s clear that he does not trust the entities behind R3.<\/p>\n

Is Wall Street a Bigger Issue Than Regulation?<\/h2>\n

Bitcoin enthusiasts seem to be more frustrated with regulators than any other group of individuals on the planet, but Byrne seems to believe that Wall Street could be a bigger problem. During his talk at Blockchain Agenda San Diego, the Overstock CEO explained:<\/p>\n

\u201cThe problem is not the regulators. I think the regulators want this to happen. They don\u2019t want to be under the thumb of Wall Street. They understand Wall Street has monopolistic power.\u201d<\/em><\/p>\n

Byrne went on to claim Wall Street is going to try to slow down the Bitcoin revolution via R3. In his view, R3 is an attempt at creating a blockchain that could be brought to regulators as a legally-enforced standard:<\/p>\n

\u201cWhat\u2019s happening is Wall Street is trying to slow us down while they come up with their own version, and that\u2019s, I think, R3. That\u2019s a consortium that\u2019s really going to be there \u2014 so Wall Street comes up with their own version, and then they\u2019re going to outlaw [the competition]. So really be alert for R3.\u201d<\/em><\/p>\n

Byrne Wanted to Join R3<\/h2>\n

Ironically, Byrne also claimed he wanted to join R3 at one point in time. He claimed, \u201cWe tried to join, but they wouldn\u2019t let us join \u2014 even though we\u2019re far ahead of everybody.\u201d<\/p>\n

The\u00a0we<\/em>\u00a0Byrne is referring to in his statement is\u00a0T0, which is Byrne\u2019s own platform for settling trades almost instantly via the blockchain, as opposed to the normal\u00a0T+3\u00a0window.<\/p>\n

Later in his talk, Byrne went back to the point of R3 being a vehicle of regulatory protectionism. He noted:<\/p>\n

\u201c[R3] will just be a way of protecting entrenched interests against competition. So, I would very much like to cooperate with R3, only to keep it from being pulled in that direction.\u201d<\/em><\/p>\n

It\u2019s possible Byrne\u2019s\u00a0past feuds\u00a0with Wall Street have led to a lack of willingness by R3 to work with the long-time fighter of corruption in financial markets.<\/p>\n

Patrick Byrne Has Become Suspicious of R3<\/h2>\n

Near the end of his comments on R3, Patrick Byrne was able to explain how he really feels about the blockchain consortium. In his view, the organization is nothing more than an attempt to slow down any progress made by the crypto community<\/a>. He explained:<\/p>\n

\u201cIn the last couple months I\u2019ve gotten suspicious that it is a mechanism \u2014 well, it doesn\u2019t have a characteristic yet. The character is being formed, but there are members of R3 who want to use R3 as a mechanism to slow us down while they come up with their solution \u2014 \u2018us\u2019 meaning this whole community.\u201d<\/em><\/p>\n

Byrne then went on to state R3\u2019s connections with regulators and lawmakers around the world could eventually be quite useful for the group. He claimed R3 will eventually attempt to make their blockchain a standardized system that must be used by all other financial institutions. Byrne noted:<\/p>\n

\u201cAnd then they will get their version launched, and then they will \u2014 you know, these bankers have regulators and senators on speed dial. They\u2019re going to call up and say, \u2018Make it law that this is the standard system, and everyone has to conform to this system.\u2019\u201d<\/em><\/p>\n

For now, it appears Patrick Byrne is not a fan of the R3 blockchain initiative. It\u2019s still unclear exactly how Byrne\u2019s T0 platform works at a technical level, but it\u2019s possible the Overstock CEO\u2019s love of decentralized systems is at odds with what is being built at R3.<\/p>\n

Read more:<\/strong><\/p>\n