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Stellar founder Jed McCaleb says most banks won’t use bitcoin

January 1, 2019, 12:29PM EDT

In an interview with Yahoo Finance, Ripple creator and Stellar founder Jed McCaleb poured just a little cold water on current crypto hype.

"The allocation of capital and resources is wild to watch, when these projects that have zero technical merit get millions of dollars," he said. "It seems like a big shame. Hopefully that will start to change. One of the nice things that comes with the market calming down—I still say it’s not a bear market—it means there’s less of that."

"Ninety percent of these projects are B.S. I’m looking forward to that changing. Things like Tron, it’s just garbage. But people dump tons of money into it, these things that just do not technically work."

McCaleb said that most private chains are problematic for the industry and will fail to grow past their early exploratory stages.

"I think it’s true that most financial institutions are not going to use bitcoin," he said. "But in my mind, what blockchain gives you is a public record that everyone can see, but they can’t change it. So parties can transact even if they don’t know each other. So you still need a public chain. It doesn’t need to be the bitcoin blockchain, but if it’s not a public chain, then you’re missing the point."

You can check out the rest of the short interview here.