Bitcoin, blockchain and 'the future of money' discussed at PwC Herald Talks event in Christchurch

Centrality founder and chief executive Aaron McDonald says people need to keep an open mind to cryptocurrencies. Photo / Shaun Ross

The emergence of global virtual currencies divides some of the world's most influential, and wealthiest, people and also split a Christchurch panel today discussing "the future of money".

The blockchain and bitcoin gold rush was explored during the PwC Herald Talks business networking breakfast at The Piano in Christchurch this morning.

Microsoft co-founder Bill Gates has called bitcoin a "technological tour de force", billionaire Warren Buffett says stay away, and Nobel Prize-winning economist Joseph Stiglitz thinks it should be "outlawed".

Keynote speaker Aaron McDonald, chief executive and founder of blockchain company Centrality, said people need to "keep an open mind", and reminded the audience people were once sceptical of smartphones, mobile applications, and other early internet innovations.

Although views on the future and use of blockchain were similar, the panel was divided over cryptocurrency. Some argued for a centralised currency tied to the bank and others argued decentralised currency was more trustworthy.

One thing the panel of experts could agree on was that whoever develops a
cheap, easy, and trusted cryptocurrency will provide the future of money.

"What we want is fast, frictionless payments and so whoever comes up with that is going to win the battle I think," said Bell Gully partner and founder of The Blockchain Boutique Rachel Paris.

McDonald believes there will be "lots of monies" in the future and Kiwibank head of transactions and payments Zoe Wallis thinks people will gravitate to one or two major payment systems.

However, University of Auckland associate professor Alex Sims disagreed, saying it won't matter who payment is made through as it will be converted in an instant and customers won't care or notice.

Paris agreed that all payments will be reconciled instantaneously but only the most trusted systems will win the battle for the future of money.

Although New Zealand acted as a global guinea pig and pioneered Eftpos technology in the 1980s and 90s, Wallis said there was an opportunity to again be at the forefront of innovation but warned, "we are starting to slip".

Sims, a blockchain researcher, said "some people in government know this and are scrambling to try and keep up".

"Others want the status quo, they don't understand it, and are just waiting to retire.

"We were ahead of people but now we are behind. We have missed a trick and unfortunately the UK and Australia are miles ahead," Sims said.