Mayor talks crypto policy

Cryptocurrency might sound like something that belongs in a Halloween movie—mysterious, invisible, and a little scary—but at CSB+SJU’s “Crypto 101” event on Monday, Oct. 28, myths were debunked, and the MN Crypto Council spoke out to make crypto sound a lot less cryptic.

Presented by the McCarthy Center and Economics Club, five panelists from the MN Crypto Council, including the founder and St. John’s alum Alex Schoephoerster, St. Joseph Mayor Adam Scepaniak, Kyle Stein, Tony Wernsing and Chase Larson, came together to discuss the future of finance and answer student questions.

“I think it’s really important to have events like this because crypto’s here to stay… we might as well learn about it and get on the boat,” said Josie Leinonen, CSB senior, Economics Club President and event organizer.

The MN Crypto Council is a nonprofit group with the goal of increasing awareness and education around blockchain and digital assets.

The men on the panel, all on the MN Crypto Council’s Board of Directors, originally came together during 2020 and 2021 when the organization was called “Crypto & Coffee,” looking for a space to bounce off investment and financial ideas with like-minded people.

The panel began by asking the audience to think about the last time they used cash.

“95 percent of our wealth and transactions are already digital,” Schoephoerster said.

From banking apps to Venmo, online transactions are part of a college student’s everyday life. The key difference between these and cryptocurrency? Who controls the ledger.

“Right now, [U.S. dollars] are controlled by the government, which is over 38 trillion dollars in debt. This is who we are relying on,” Schoephoerster said.

While U.S. dollars rely on centralized institutions, Bitcoin and other cryptocurrencies rely on a decentralized network of computers rather than a third party.

First introduced to crypto around 2020, Scepaniak was drawn in by the ability to trade and buy art through NFT’s, non-fungible tokens, that give proof of authentication and ownership to digital art.

“This ledger cannot be stolen or faked,” Scepaniak said. “It’s exciting to me, and many others, that it can be applied to so many other areas of our lives.”

One area he pointed to is sports. During the 2018-2019 NBA season, then-Dallas Mavericks owner Mark Cuban began to accept Bitcoin and other cryptocurrencies for ticket purchases to prevent fakes.

The future application of crypto is all around, and much of it is happening behind the scenes.

“It’s coming and I think it is coming at a much rapid pace looking forward,” Schoephoerster said.

In addition to event tickets, cryptocurrency is appearing in everyday spaces, like Walmart’s new reward system.

For those interested in being a part of this shift to the future of finance, the panelists offered both encouragement and advice. Crypto prices are extremely volatile, meaning they can go up or down very quickly. However, panelist Wernsing noted that risk and volatility aren’t the same thing.

“The government will still be printing money; inflation will still exist … Only 21 million bitcoins, not many other things are that scarce,” Schoephoerster said, encouraging students to see its long-term value.

The panelists urged students to take caution when hearing about “meme coins,” which have limited utility and are created due to internet trends. They emphasized the importance of research and verifying the legitimacy of investments.

“Bitcoin has been the best performing investment you could have put your money in in the last 15 years,” Schoephoerster said. “There
are parts of it that are risky … [but] we’re at a point now where there’s regulation, you’ve got the government involved … the risk is getting smaller and smaller.”

Their practical advice was to start with Bitcoin, the simplest of cryptocurrency, attend MN Crypto Council meetings, and stay informed.

For those still intimidated by the technology, Schoephoerster offers a reassuring metaphor:

“It’s the same with your iPhone. Could you tell me how the [iPhone] flashlight works? I sure couldn’t—but it works,” Schoephoerster said.