E. U. Are the one case in five years. What was the item purchased . I dont even remember. It was just negligence on his part. It was like the one time we ever saw fraud. Knock on wood. But we have a system to protect everything, so we are good. Every american is completely different than if we think we can add value to it, we will, but right now theres so much more to do. Either. Especially peertopeer and fair access. I get the sense you are into boxing right now. You mentioned it a few times. Lets talk about boxing. I will put you on the spot and ask you to define boxing for people who may not have a whole grasp of it. How many people here feel they are familiar with boxing and what it is . Okay. I was in your boat a few weeks ago when someone asked me to host and i said yes and spent several hours the night before trying to understand it. So why dont you eliminate us, please . One simple way to describe it is like what weve seen with the most interesting technologies, technology is more empowering when it gets more decentralized and when there are less gatekeepers and less obviously centers of control. Our ability and capability to cordoning machines all over the world is an understanding of the manifestation in general and how to cordoning data as a cloud and our understanding of how to coordinate computing is coming up, distribute computing into cloud computing. So, the next big online quiz the concept on accounting terms, that can be applied to so much more, which is a ledger and being able to distribute and decentralized a ledger enables proof of work and proof of one entity in an un trusted not working the same thing weve created with a cloud in the internet. So assuming this trust in the network word this trust in the network, we can still account for transfer of value as well. That is how i would define it and think about it is how do we think about implementing a distributed ledger and how does that make our work more efficient . How does that distribute trust . And when you talk about distributing trust and identity, they so many problems that we can help solve that are not just related to finance, but finance is an obvious one. I saw a quote of the internet you might look at one of the specifics is like the coin of the email, one version of something occurring within that framework or one version of the transaction that is occurring. I want to back up a little bit and talk about the coin specifically. Do you follow the coin . Yeah, so one of the principles of squares we are going to help the seller make the sale. That means whatever form of payment comes across the counter, physical or digital, we will enable them to accept. I really broaden their thinking. With interest credit cards feared would help them accept cash and checks and they should never have to think about what someone is using to pay them. They should just think about how to make a sale and the buyer should never have to compromise what they want to use or what they have access to more importantly. So when big coin first came out, we felt acceptance into our Online Stores so that any one of our customers going to one of our online doors could use big coin to purchase. Back then, a lot of are sellers were selling candles and, you know, bags of coffee and incense and stuff and people were using big coin to buy that stuff, so we saw two or three sales a day. So, it is interesting for us because they got to learn how to apply the technology that fit with the principle we had, but it wasnt enough to really say we need to shift our focus. Recently, one of the most surprising thing that i have experienced in the space of seven from st. Louis, missouri and i have a lot of friends and family who are not in to technology. You know, effect to a i fixed the fax machine she you know, over the holidays, one of the questions i kept getting asked by the people i know and also people i met around st. Louis was you were to technology, finance, hardaway five big coin . I asked whether you want to try it . They said come you know, i heard its a fast come easy way to make money. You want to treat it like an investment . Yeah, someone said it is like digital gold. At the price of gold right now. So im buying digital gold. I heard so much about big coin. Its amazing how mainstream the brand is. Its not about currency at all to these people asking questions. It is about an investment. The fact that one of the incentives that sit till she wanted to put out there was to incentivize savings instead of spending. For this group i shouldnt say he appeared wanted to create a deflationary currency, which meant that it had to be finite and that it would potentially always go up in value because it was the fierce resource. So, people have actually grasped onto this concept of it is kind of like old and it is this weird Digital Asset that i dont know how to buy, but if i buy it, it will have ups and downs, but the trends have generally been a period if i stick with it, and by 10 versus 25 or 100 worth, i might make a little bit and then i can sell it. That to me is pretty fascinating. You agree with that . Im sorry to interrupt. Do you agree its any type of crypto currency . I dont know if i have to. That is how people are using it right now paid the market is telling us thats what its being used for. I bought some . Yes. Do i treat it like that . Yes. How much have you got . [laughter] not as much as others. So you know, i have thought about ive bought some and then could i spend big coin at this coffee store . What would that be like . And then you realize, this thing is deflationary. Just keeps going up. If i buy a 3 coffee today, two weeks later he could be 100. Thats the most expensive coffee ive ever bought. Its just interesting to think about. Its been labeled as so many people as currency, which it does have over time some attributes around. That is not how people are using it today. What job is disturbing for people today in the job serving people today is a quick way to potentially make some money. And its cool and its interesting and its mail and its different from the stock market or other securities or gold, which someone today described gold as a rock. And they cut to a generation into space than it is. They want to and we should really ask more questions about that. What are the biggest implications of having a crypto current fee in the world that doesnt have borders, isnt Government Back or owned in any way, that Anyone Around the world can have access and trade in a pretty secure way. I mean, just thinking about geopolitical implications. What does that mean if it becomes a real thing . You just looked at the attributes about why one would want to Digital Currency. You would want it to be free. You would want it to be convenient, which it isnt digital. You would want it to work anywhere. Those are the three attributes i would value the most. I think for those who need to speak in a pseudonym or take action in that way, it is important. But to mean does it not be necessarily the leading indicators. So i generally believe any technology that helps us see we are as a civilization all in this together and the sooner we can remove some of these very areas between mass, we will see with money and current in our lifetime. If we were that these barriers can continue to recognize and acknowledge we are all in this together and facing really big problems we need to focus on like the environment, health and health span in increasing lifespan and economic disparity and enabling people to participate more fully. Those three things are massive and require all of our attention instead of all of these distractions would put in front of ourselves. Happy multiple currencies that is the idealistic positive that i get excited about. We need to make it practical and we need to build bridges to get there. They are all possible. Distractions like twitter. Last night i want to ask you one more quick question about block chaining, which is there has been discussion about whether it could be utilized outside of financial services. Do you think thats possible . I saw a report the other day that china is using block chaining to collect taxes and china has been working on its own Digital Currency for a while. You mentioned media. What about the exchange of other things . I think theres going to be a bunch of people who lets try and solve every problem the same way we try to solve every problem with Machine Learning and data science and artificial intelligence. We need to be more thoughtful of water people struggling when its and how does the technology progress. Back to lily bell, our first merchant besides jim the cofounder, she struggled with accepting credit card and messiness sale. Those are the questions we should ask. I think there was a report not too long ago about spot if i acquiring a company to help with distributing payouts and extremely complicated loyalty schedule that it has to manage. That is a super creative solution to a real problem, but the company is obviously struggling with them is very mechanical and can be fixed. I would approach it more of the fundamental problems that we can create more efficiencies around. There are people say we are using block chaining because bought chain is the same. All right. I think we are going to get to audience questions momentarily. I do want to ask you a couple questions about twitter starting with how you are currently spending your time. I know you get asked this a lot, but you are running two companies concurrently. Not chairman of that board. Are you dividing your time evenly now between twitter . Yeah, we often emphasize it is easy to go back to time. In the early days it was a matter of time for me. To me, it is really what we do with that time. To me it is a question of focus and what we are actually spending their time on. It is not about 50 of my time here in 50 of my time here. It is how are we spending this one hour we have a narrowly focused on the most important thing right now . And if not, why are we talking about it . That mindset allows a whole lot more flexibility in my schedule. This is independent of twitter. When i get to an answer of what is the most important thing right now that i need to be thinking about and spending my time on in talking with people about and if its not that why am i spending any time on it or talking about it . It goes back to we only have so many hours in a day. We only have so many days on the planet. So am i doing something that i feel proud of and that is meaningful . That is how i balance what my priorities are and what does that matter. And my priorities telling me whats up if they disagree with what matters both at work and also my personal life. Twitter is doing very well right now. Twitter has its own unique struggled because it is the unique social network platform. Do you feel in some ways you are prioritizing things differently because of how acceptable twitter has been lightly in the struggles twitter has . No, they both have different needs and they are both in different phases. I will do whatever it takes in whatever i can do to make them live up to their potential. The potential is great and they are both enjoying companies that i want to set up so they outlive me and are not dependent upon me. So that is what i am focused on. As individuals, as humans sometimes we are going through a lot of really bad stuff and sometimes it is good. We certainly change our approach and focusing on one thing doesnt mean you completely lose sight of something else. I dont know. It doesnt feel complicated to me. It doesnt feel complicated to me because it feels like we have a shared sense of what matters. As long as we have that and hold each other accountable, we will do the right thing. It seems as though there has been a lot of victor l. On twitter in recent months coming from high profile people because its a social not work and thats what happens on social networks. View it seems are constantly caught up in people are saying, well, you should kick the president of twitter and some people say that goes against the freedom of speech. It has to be something i imagine you are grappling with. When you were interviewed at this code event last september, he said it is complicated. I mean, has your thinking around that evolved at all in recent months . Has made a game of it being complicated . More or less complicated. We are a service. We are a company and we have published rules and we have to hold every single account to them, independent of who is behind them. Thats sad, i do believe that the more we hear and see how our leaders think and act, the more we can hold them accountable and i would rather those conversations be in the open didnt be in the dark. The constraint on not that we have to make sure we are balancing his actions that are inspired from reading them from sharing those thoughts. So i dont know many other ways to solve that didnt just shining as much light as possible on it and having had so been in transparent a conversation about it so we can get to a common understanding faster. But look, we are pushing ourselves to learn as quickly as possible as the rest of the world is on how to deal with the velocity of the technologies we now have and that i think is what has changed most fundamentally peered with any technology, it is just speed. Technology is a tool that helps people do things faster and to do things faster can be really scary at first. It also has the potential to save a bunch of time and a bunch of effort. So, im an optimist and i am positive and im an idealist. I do believe that openness and transparency can help us realize again we are all in this together and we need to come together and all of these barriers that we put up our distracted to the real problems we need to solve together. [applause] okay, weve got a bunch of questions here. Maybe we can do a rapidfire round. Thank you for submitting these. The first one, stick down restaurants, where do squares fitting that interaction . Its a great question. The kind of routed around us. When we first went to restaurant, we would say, do you want to make more sales by accepting credit cards and i said yeah, and you do reservations as well . We said no. That was something we dont want to get into right now. So we decided not to the point of sale for restaurants. What we decided to do was look at ways to continue to drive more sales to restaurants in the superpower that we found with delivery. The interesting thing about restaurants as they are constrained by their physical size and the number of tables they have and how quickly they can turn them over. The kitchen can actually produce more than the number of tables they can have. A lot of restaurants go to delivery, but they have to manage delivery at night can be very messy, can be a ton of work. We found a Company Called caviar that has its own delivery and had a deep relationship with restaurants and we could just send a customer through a nap. I want to order some Fried Chicken and soda and i want it to come to me and we could send a courier, pick up food and send it to the customer. While the restaurant had to do was focus on the kitchen. It seemed amazing. Weve done really, really well with the business because of that focus and now we are extending that to maybe not just delivery. We have a bunch of competitions in the delivery space of food in particular. What if we were to shift the mindset of the them instead of focusing on delivery of food, focus on just food and just delivering food. So, that enabled us to think about pickup as well. So, we want to be a place when you are hungry you go to caviar and choose what you want to eat and obviously do you want to go pick it up, do you want to sit down or do you want it to come to you . And that feels like a much Broader Market and the lands of the principle of driving more sales. [inaudible] what is the first thing you do when evaluating a new idea . Build it. [laughter] we have this principle at square called the show, dont tell. End quote we meant to do with that and what we meant to tell and ourselves was you cant just go to someone with an idea. I want to be able to show how something works and they want people to feel it and i want them to finish your sentences. I want them to engage in our imagination. So lets do the work to actually make the thing work. And then, presents a to the company or to our customers and then learn from that and get an evaluation from our customers or colleagues will get a bunch of critique and learned a bunch and it will be something we should continue investing and that has always worked for me. With twitter, we didnt do any investors until we had hundreds of thousands of people using it until we had something up where. We didnt go to the site until we had something that were announced the best way for us to evaluate it. Otherwise theres so many excuses for things we should do or things they shouldnt do in the idea that its really convoluted and way too big and becomes something thats not really solving the problem. I imagine it has to be some type of valuation process pdq does not every idea. You wouldnt have the time in your day to do that. Well, we have a lot of people who do that now. You just delegate. For someone who wants to be in your shoes in 10 years, what does he or she have to do . I mean, i think the most important thing for me was to really be clear about what i wanted to build in the world and what i wanted to be and more importantly what i didnt want to be. So having selfawareness, so you understand where your strengths are in wiretaps are not not a onetime event. Always fun going. Having a clear sense of what your purpose is and what you want your purpose to be is really important. And then, just a lot of hard work in putting yourselves out in very uncomfortable situations when i was a kid, i had a speech defect. I could not pronounce pretty much any word. I had to go to a speech therapist for years before i felt comfortable even speaking with people. So i was super shy and it caused me to really withdraw. I got a lot of qualities from that. I became an introvert. Im very focused on my intuition and my gut feeling, but i wasnt able to do anything like this. So when i was 12, i just said i got to get over this. Ive got to be able to talk with people and i join the speech club in the debate team at my school and i did something that freaked me out, which was based in prague speech, they give you five minute in a topic that you would have no hope of understanding as a 12yearold. And you had to write a five minute speech in five minute on the topic in sound like you know what youre talking about. It was such an amazing exercise and it really made me uncomfortable and it really focus me on what i needed to improve. So i think the book called growth mindset, which talks about a very simple threepoint process you can go to rep thing which is observed, learn, improve. Become a really good listener and observer of how people act in what you do. And just watch him go and to learn, which is understanding and putting patterns together and recognizing how things cannot and have used those to improve and ideally improve yourself. I think the responsibility i have to make company and to my family and friends of selfimprovement, to really better myself every single day in some ways. Taking on that mindset if im going to work really hard aligned with my purpose in understanding what the gaps are, to be better every single day. It helps me in the past 10 years. A device. Lots of people asked this question. What competition of any deep playing for or foresee with apple ios 11, which is an excellent question. Ios 11 is what has come out in the following one thing apple is doing now is peertopeer payments directly in their im message path. Are you planning its interesting because you also work with apple in a lot of ways. Talk about that relationship and how you plan for the launch of the best competitor. There is a lot of various ways we can collaborate and compete. We were here because of the iphone. It has enabled us its enabled so much in our company, and the fact that there is a super computer and general purpose enough that we can hook a reader into it. It is amazing. So much gratitude for what that company has done. From our business, but also personally. We have to see what people do with it. Ive seen a keynote of it i think one of the attributes we have is we are a crossplatform and we have a really open network and thats really important to us. In the intersection of things rather than being on the platform. We have also found we have always wondered about messaging and money movement. Thats how we started. We started with email and then we moved to an apt and we found that people really like single focus, singlepurpose applications and that has been a strength of ours. Lets see if that actually plays out as that comes everywhere. More and more common we are seeing square cash in on is peertopeer, but a spending device. You can spend money with your friends, with your parent, but we see more and more and go into the value. We think theres a whole lot more we could do there that really affects us. Yeah, you look at our whole business and all the surveys we provide between them. Theres a lot of interesting things there. Credit Card Companies collect transaction data from cardholders and sell that data. No. We wanted to make sure that our job with data was to provide insight to the people who own it, which is our customers. Our customers come first and foremost. So our job and i think our value is to take all the data that they have, all the data that they see in bottle it up into insights they can actually make decisions around. This is how cappuccinos are trending over time. This is how many new customers you have versus existing customers you have. At the same time, make sure customers have control over what data they were sharing with square because thats where it goes to. We dont enable a buyer, a customer to share we dont enable a seller to see the email address or phone number of a buyer, for instance. But we have given a button to the buyer under seat that says they can add me to their newsletter or the seller can offer me records. We opted more for simple, straightforward controls for the buyer customer in the inside and the data for the customer the square card is the visa card. In that case visa is getting information based on the purchase and the issuers are still getting information. They are getting the information. We dont control what data they choose to share or choose not to share. We get impacts in terms of his rights and back to the buyer in terms of options. Several European Companies will figure out checks and tenure saw bills and coins are going extinct across the world. Why is the u. S. Lacking . Can they catch up in a fascist world . At the funny thing because weve already been monikers and adopting technologies. The same was true when twitter started. We started the service in 2006. In 2005, the first year sms text messaging became a thing in this country and that is surprising to everyone outside of this country because they had been using it for 10 years prior. For 10 years, people were using sms to communicate with each other very reliably and doing more so than phone calls. We didnt happen in this country because you could not send a text when cingular to verizon. We didnt have any cross carrier ability to send Text Messages because they were two different technologies. So you had tsm, which is what sms is based on and cna, which was verizon in older systems. Because of the different tax, the two could not communicate and suddenly text messaging will appear. I imagine we are seeing similar things where we have parties in the network who are holding on very, very tightly to what they own and what they have and not necessarily being open or forwardlooking in terms of how utilizing a Single Technology or standard could help grow their business or not seeing where they cannot add value elsewhere. That is probably their reasoning. But i dont know. We have traditionally been very slow with these newer things the rest of the world gets first. Also in emerging markets, people are using global because theyve had to because the infrastructure simply wasnt in place. Thats the thing we can learn from, too. Countries in communities all over the world with things if i do go through. Not just giving things to arrive in the same place, but arrived like five years ahead of us in this country. So yeah, its something weve got to learn from. Ards is how you value her time between twitter and square. Moving on. You focus on adding value and solving problems. As a young entrepreneur, had you raise enough capital to growth before monetizing. How should i waste enough capital to hire technical challenge to grow before monetizing. I mean, this could be a different answer for what youre doing. I think awareness of what you absolutely need and then adding a cushion for the unknown i think its generally a good form. I think we live in a world right now or we can do a whole lot more with a whole lot less than we are looking out are looking at that and both companies in terms of how we become a lot more efficient. One of the things i learned from my mom. My mom ran a coffee store when i was a kid. She had a coffee store in st. Louis, missouri. She employed me and my two brothers. I hated coffee in a heated tease. I would just make them manipulate this is the best tasting cappuccino ive ever had. I would always ask the question, why dont we open another location . Why dont we go global and selling supermarkets . Why do we have that ambition . Who asked us questions and she would say thats not what i want. I want to provide a place for my neighborhood gettogether by eating beans and getting coffee might be the reason, but the result is the neighborhood kids to come together and see each other and talk. Its extremely segregated northsouth and my parents are right in the middle. Read on the center point and it actually worked with people from the north and south coming together and talked. It took me a long time to learn this, but i realize one of the powers of technology is not necessarily its to be able to make and i just think that is so cool. I would look for ways to do it much as possible with Key Resources as possible. Weve seen some examples of this in our companies and its an interesting example where their smallest team in the company. Its also her most distributed team. We have no center of gravity. Engineers in San Francisco, kansas city, missouri, waterloo, sydney, melbourne, sweden, austin, texas. Probably just tired people and places im not aware of yet. Not only how to distribute themselves completely, but also to be one of the fastest moving teams in the company as well. So they are small and super distributed. I think that is the future of our work place and our companies. We had to state offices in San Francisco for twitter and square and these huge campuses are history. Those things are going away. I think it is just so liberating as well but i can work from anywhere and impact the world from anywhere. And i think its an expectation of the generation coming to work for us as well. Next question. Digital wallet and other nontraditional thinking, how do you think regulators will respond here and internationally . As they have for the past 40 years. There would be a lot of skip this is them and Patrick Austin said this really well when he said that our job at our company is to help educate regulators and then you take on the mindset of we are not against the regulators could we are going to help educate them. It really opens the door for a healthy and progressive and forwardlooking conversation. I imagine their job is to somewhat be on the defensive and to protect and to protect particular interest in ideally they are the interests of individuals. It doesnt always manifest in that way and those are the things we need to question and those are the things we need to educate around. Just a few minutes left in this discussion. You can see it in its entirety on our website, cspan. Org. Going live now to the paralyzed center for america, holding for spinal cord injuries. A doctor at the Veterans Administration will be speaking about intervention to prevent suicide by spinal cord injury patients. Live coverage here on cspan2