Bitcoin: Banking Business Battle for Consumers’ Wallet

Today technology plays a key role in the performance of financial institutions. Financial institutions invest heavily into information technology to improve delivery channels as well as for compliance and risk management purposes. With the advent of Internet and mobile banking we can now access our accounts from home, work and just about anywhere. These new delivery channels reflect the changing needs and preferences of customers, coupled with growing technological innovations. At the same time these new channels have added to the ballooning cost of investments in technology for the banking sector.

According to Capgemini’s “Trends in Retail Banking Channels: Improving Client Service and Operating Costs” global IT spending on retail banking channels remained stagnant in 2009, but was expected to grow to $45.8bn at a compound annual growth rate of 4.2% through 2012. To combat the heavy cost associated with their investments in technology most banks are forced to look for cost saving measures particularly in their back office operations and this has resulted in the further automation. With the cost of investments in technology seeming growing unabated banks are now forced to seek out revenue enhancement measures to drive profitability.

The search by banks for revenue enhancing measures is taking place at the same time that Bitcoin and virtual currencies is building momentum towards more widespread adoption. In this post, I will argue that the momentum in Bitcoin has placed its development and adoption squarely on a trajectory that clashes with efforts by banks to increase their revenue streams.

The fact is banks want to control a great portion of a customer’s entire financial relationship or portfolio. They have invested heavily into costly technology and are now looking for ways to increase the share of consumers’ wallets. Banks are by their nature inefficient creatures as their legacy systems or antiquated systems are designed to collect and process information by product and transaction, and not necessarily by customer. Unlike, insurance companies that collect information on individual consumer so as to segment and price different types of risks, banks have done a poor job at collating customer information. One exception to this is the regulatory demand placed on banks during the post 911-era to collect more information on both corporate clients and individuals for the purposes of combating money laundering and terrorist financing. Even in this latter case, banks have had to either retrofit or discard legacy systems and invest in new technologies that allow for better capturing of clients’ information for the purposes of compliance with anti-money laundering and anti-terrorist financing rules and regulations.

What is the point? Banks are not just inefficient. They are also regarded as poor financial stewards and lambasted for the role in precipitating the 2008-financial crisis, the worst financial crisis since the Great Depression. It is this negative image of the banking sector that is driving innovations such as Bitcoin to challenge the hegemony of the banking and financial systems. Bitcoin, can easily be viewed as Libertarians opposition to the status quo of the banking and financial system similar to the Tea Party Movement opposition to the political influence that swept across the North America in the aftermath of the 2008-financial crisis.

The battle lines are drawn even when consumers know that banking need Bitcoin and Bitcoin need banking. The banking sector is straddled with legacy systems that do not make it easy to slice product and transactions data per customer. The systems were designed with transaction processing, per product, in mind. Consequently, while banks have made some progress in achieving multi-channel integration to achieve seamless customer navigation across different channels, banks face enormous challenges around their existing legacy applications, systems, and processes which often operate in silos. Our banks have to overcome the challenges of its legacy system to deliver true seamless experience across channels to consumers. Today, there is a greater demand to understand relationships, data has to be mined and collated from a variety of systems and geographies. This is a massive and costly undertaking but one that might be readily addressed with Bitcoin.

Bitcoin and virtually currencies by design represent one of the most significant innovations to hit the financial system in a long time. It is perhaps the most significant development since swaps were first introduced to the public in 1981 when IBM and the World Bank entered into a swap agreement that revolutionise risk management and hedging. If Bitcoin and virtual currencies gain traction, it will represent the most significant competitive threat to the hegemony of the financial system.

The banking sector and the Bitcoin community are at odds and at polarizing ends of the spectrum. Bitcoin has the potential to become an important protocol for the exchange of money online at enormously lower fees than banks and credit card companies charge for online transactions. It also has the potential to drive the transaction costs for cross border transfers lower. As an immigrant and a consumer that is like music to my ears. The World Bank estimates that remittances totalled USD 440 billion in 2010, of which USD 325 billion went to developing countries, involving some 192 million migrants or 3.0% of world population. In many cases, the cost to consumers of these remittance transactions is expensive relative to the often low incomes of migrant workers, the amounts sent and the income of remittance recipients.

Like most immigrants I also have to remit funds back home to help take care of love ones in Jamaica. As a consumer I find the cost of remittances and wire transfers is enormous. It is costly to use money services businesses such as Western Union. Bitcoin in its current form allows free transfers done from one Bitcoin address to another, unless the sender elects to pay an optional transaction fee, which usually amounts to pennies, for faster confirmation. Most consumers will welcome any reduction in remittance transfer price or transaction that would result in more money remaining in the pockets of migrants and their families. The World Bank estimates that if the cost of sending remittances could be reduced by 5 percentage points relative to the value sent, remittance recipients in developing countries would receive over $16 billion dollars more each year than they do now. This added income could then provide remittance recipients more opportunity for consumption, savings, and investment in local economies.

Bitcoin also offers near real time settlement which is also a big plus for online businesses. Bitcoin can settle transactions within seconds for good. Allow me to share a personal experience. Recently, I received a cheque from a client. My client and I conduct our financial affairs with the same bank. Despite this little fact, the bank held onto the funds for seven business days. If my client had used email money, I would merely accept the payment and then deposit the funds directly in my account. No problem.

To add further insult, the teller attempted to clear the cheque in what I consider to be archaic. She first called my client to confirm that he had written out cheque to me. She then proceeded to call my client’s branch to request a fax copy of his signature. The kicker for me was when my client’s branch informed the teller they could not find or retrieve client’s signature. I could not help but think that despite the significant the investment in technology banks are just as inefficient today as when I started my banking career in the late 1980s in Kingston, Jamaica.

As inefficient as banks are, they will not lose their hegemony of consumers’ wallet that easily to the innovators and developers of Bitcoin. They are going to fight to hold on to a greater share of consumers’ wallet. This is the battle ground. This is a gigantic political conflict. In my view, Bitcoin aficionados and enthusiasts are at a slight disadvantage. The Bitcoin community seem fragmented and opaqueness. The community seem to lack of transparency the hallmark for building public confidence and trust. They seem to lack the public relation and marketing savviness as a true competitor. Bitcoin aficionados cannot expect to continue to position Bitcoin and virtual currencies as merely empowering the average consumer. Bitcoin and virtual currencies are far from unsophisticated. It is complex. In the battle for consumers’ wallets, banks have first mover advantage since they already serve a custodians and intermediaries of the financial services. The banking sector also holds significant political clout.

Bitcoin can play an important role in address gaps and deficiencies in the global payment systems as well as reduce transaction costs in the current banking and payment system. To be truly competitive Bitcoin will have to move beyond the dark clouds of the recent collapse of Mt. Gox, the Malleability or denial of services attacks (DOSAs), the Liberty Reserve criminal and money laundering case. These incidents caught the attention of governments around the world and the public igniting discussions about regulations, which I do believe are relevant. However, lost beyond the clouds are the threats Bitcoin poses to the banks for a share of consumers’ wallet as well as the possible benefits of Bitcoin to the banking and financial system.

Bitcoin need the support of banking sector and the banking sector need Bitcoin. Bitcoin also need broader public support. In order to win broader public support Bitcoin innovators and developers have to work on creating a positive image of their products and the Bitcoin community. It cannot be seen as merely a bunch of Libertarians or even anarchist wanting to either disrupt or revolutionize the financial system. They have to dispel the view that the Bitcoin and virtual currencies is overrun by organised crime groups and criminal enterprises. This can only be accomplished by being transparent about their business. Share with the public information on security, compliance and risk management measures taken to safeguard their operations. They have to strengthen corporate governance including disclosure of information on key personals.

What do you think?

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog  http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin. 

Step Right in and Step Ahead

I commute daily by train from Brampton GO Station to Union Station. To ease the stress of commuting I use my commute time to read the Metro News and do the Sudoku. I also observe the people around me. One morning at Brampton GO, I met a lady because I parked very closely to her car and she had to squeeze to get out. Since then every morning we sit in the same coach on the train and we always smile and say hello to each other. I also met the young male train conductor who walked through the train to validate passengers’ Presto passes. He always smile and compliment me on my tie.

In the crowd at Union Station I get disoriented by the rapid movement of the large number of people. However, I amazed that in all the seemingly confusion of thousands of people milling through Union Station there are people who still take the time to hold the door for others behind them. For these people I think the journey itself is their goal. While they are in a hurry to get to work getting there is not as important as the path they take commuting from home and milling through the crowd at Union Station.

Why do they hold the door for others behind them? There may be a number of different reasons such as personality trait. Some people are conscientious. Men for example, are socialized to hold the door for women and young people are taught to hold doors for older people. Holding the door open is a polite and thoughtful act. It is easy to do for your family, friends and even strangers, every day. People appreciate respect and good manners even when they are moving hastily to get to and from work.

How does holding the door relates to success? An important component for success in my mind is the ability to allow others to step right in and step ahead. Success is about extending kindness to others. Success is about recognising the importance of having a supportive team during the pursuit of your goals. It is also about not being selfish. It is the ability to put the interest of others ahead of your interest because an important hallmark of success is effective leadership. I am truly impressed by the people at Union Station who are not obsessively focused on their own destinations or goals. Although they in a hurry they take the time to allow others behind to step in and step ahead.

How focused are you on the completion of your next project? How focused are you on finding a solution to problem? Being focus and goal-oriented are key components for success. On the path to success we should take others with us on the journey.

When your adrenalin is high do you become fixated to the point that you see others just being in the way? How do you feel when others shut the door in your face?

Today I want to encourage you take some time to enjoy the journey. Life is not purely about looking ahead for the end result or where you are going. Life is also about how you get to your destination. It is about the people you meet, the obstacles and challenges you face along the way to achieving your goals. It is important that you don’t will miss the journey of how you arrived at your destination or goals. Pause even just a few seconds to hold the door open for the person behind you. Enjoy the moment when that person, a strange turn and say thank you. Even if he or she don’t say thank you, don’t sweat it remember you held the door open because it is the right thing to do. Take the time to enjoy the magical things that happen along the way such as the random interactions with others when you pause to hold the door open.

Holding the door is about you. How you treat others can also say a lot about you as a person. Holding the door tells others that you are polite and everyone appreciates a polite act. If you flash a smile, it conveys friendliness. We should treat others the way we want to be treated. Most importantly small gesture on your part, like holding the door open for someone, will certainly brighten their day and may even turn around a bad mood.

When we hold the door for others behind us we are in effect increasing the pace of the entire group. This should in effect help you to get to your destination faster. Remember a key component for success is that we need the help of others to achieve our goals.

I am determined to achieve my goals in life but I am not walking through this doorway alone. What are some of the ways in which I allow others to step in and step ahead? I coach and mentor young people like Daniel Chin and Marc Samodee. I am active in my community through my involvement in Toastmasters. As Co-chair of the Terry Fox Public School Council I also have an opportunity to collaborate with the school administrators and other parents to make a positive contribution to the future of our children and our wider society. For example, on Wednesday the March 26^th we hosting a Pasta Dinner Night at the school to help raise funds to build a play structure for the children. I am also involved in the Calabar Old Boys’ Association – Canada Chapter (COBA) and on Saturday I had the pleasure of participating in a planning committee meeting hosted by Noel Davidson to planning a benefit dinner for Calabar High School in Kingston, Jamaica.

On our path to success and in our haste to get to destination or achieve our goals let us take the time to allow others to step right in and step ahead. I know that there are so many people who have gone before me and so many will go after me but I want to enjoy this moment. I know I am m not the only one in this space. If I hold the door for you, will you hold it for someone else?

Remember life is a journey. Enjoy the moment. Holding the door for someone is about manners. It is about time. It is about face-to-face interactions. It is making a split-second decision whether to connect with another person and acknowledge their existence.

Today I invite you to step right in and step ahead!

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog  http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin.

Bitcoin Regulation

This is the final part in a series of blogs I have written on the way forward for regulating Bitcoin and other virtual currencies. Last week the Financial Industry Regulatory Authority (FINRA) in the US issued an alert to warn investors of the fraud risks of using Bitcoin. FINRA is one of the latest regulatory agencies to flex its authority when it comes to Bitcoin and other virtual currencies. The recent losses of failure of Mt. Gox have not gone unnoticed by regulators around the world.

Besides the risks involved with speculative trading in bitcoins, Finra said there are companies that fraudulently claim to offer bitcoin payment platforms and other bitcoin-related products and services. "Investors looking to get in on the ground floor of a Bitcoin-related company should realize that fraudsters may see the latest digital currency trend as a chance to steal their money through old-fashioned fraud," said Gerri Walsh, Finra's senior vice president for investor education. The regulatory agency also said platforms that buy and sell bitcoins can be hacked and can fail, and unlike U.S. banks and credit unions, there are no safeguards for bitcoins.

As I continue to think about the regulatory framework for Bitcoin and other virtual currencies, I think there are other issues that are of concerns to both the developers of Bitcoin and regulators. For example, there are a number of important considerations relating to the use of Bitcoin by merchants. First, at this time Bitcoin is exhibiting speculative behaviour and this is not attractive to merchants and trader of goods and services. Merchants typically requires some kind of price guarantee and consumers love stable prices. As the value of Bitcoin is constantly changing it will be difficult for merchants and traders to determine what price to change for their goods and services especially if they are converting back to currencies which have a legal status. If they have to constant change their prices as result of volatility in Bitcoin, this will frustrate both merchants and consumers.

The uncertain mechanism of calculating the transaction fee is also one of the factors that could negatively affect mainstream acceptance of crypto-currencies. Another important point for traders is also the tax implication. In Canada, merchants are required to charge sales tax at the point of sale. If they are using Bitcoins, meeting the tax obligations is going to be a mammoth task given the tiny values that might be involve in Bitcoins values that will have to be converted to Canadian currencies or the other currencies in which taxes are paid. There are also issues with processing time and information security which included confidentiality, integrity and availability. The malleability and related denial of services attack on Mt. Gox and Bitstamp and the subsequent collapse of Mt. Gox on allegation of theft of over 700,000 bitcoins will not help to build confidence.

We can use lessons learned from other large corporate failures to act as a guide for the direction of regulation of Bitcoin and other virtual currencies. What have we learned from large corporate failures? Arising out of the collapse of Enron, Worldcom, Global Crossing, Parmalat and other large corporation in the early 2000s and the global financial crisis in 2008/2009 governments and regulators have created a mechanisms for greater transparency by financial institutions. The culture of Bitcoin firms appears to be one of secrecy. It would be helpful for the public to know that such firms are managed prudently and the public should not have had to wait until Mt. Gox went dark to know about weaknesses in governance, control and security behind such an entity. From this perspective the issue of corporate governance of Bitcoin firms are relevant. The investing public have a right to know what are the institutional conditions governing such firms.

This is a question that is best answer by having better understanding of the manner in which the boards of directors and senior management of Bitcoin firms oversee their businesses. It encompasses the means by which members of the board and senior management are held accountable and responsible for their actions. Corporate governance includes corporate discipline, transparency, independence, accountability, responsibility, fairness and social responsibility. Timely and accurate disclosure on all material matters regarding their operation, including the financial situation, performance, ownership and governance arrangements, is part of a corporate governance framework. The board is the focal point of the corporate governance system. It should ultimately be accountable and responsible for the performance and conduct of their firm.

Bitcoin firms that have clear and transparent policies and state of the art security measures are more likely to generate confidence and have stronger currencies. Arising out of the Mt. Gox failure it is my understanding that some exchanges are contemplating publishing their ledgers as a form of public disclosure and transparency. If firms can publish their ledgers without breaching individual consumer’s privacy this might be a welcome solution towards transparency.

Addressing the issue of corporate governance could be useful in enhancing the confidence and reputation of Bitcoins and others in the virtual currency community. Firms that have a reputation of lengthy delays in settling transactions or meeting commitment will suffer. Since virtual currency payments are not settled in central bank money or commercial bank money, nor is there any lender of last resort, a crucial element affecting the virtual exchange rate is the trust gained by the virtual currency issuer. Another area for consideration relates to the fitness and propriety of significant owners and key functionaries such as board members, senior management, IT personnel and others involved in Bitcoin firms. Most Bitcoin firms are likely to be privately held and very little is known about the significant owners and management. Regulations relating to fit and proper requirements of such persons and their financial soundness would be helpful to build confidence in the Bitcoin and the firms supporting or providing Bitcoins.

Here are some key components that should be considered for the regulations for Bitcoin and other virtual currencies should entail.

As a starting point and as noted by the Lawsky the superintendent of New York Financial Services Department we need a system of registration so let us call it BitLicense. From licensing and registration the following should flow:

a. Capital requirements. We will need a mechanism for determining an appropriate level of capital.

b. Fit and proper requirements for company directors and management including competency. This will call for more information on the people behind Bitcoin. While it would be notice to know more about Satoshi Nakamoto, he is bit irrelevant if Bitcoin and other virtual currencies is going be taken seriously as alternative currencies and payment system. We have to focus on the people who really matters today such as the management of CA Virtex.

c. Requirements for liquidity and reserves. One of my ideas is that virtual currencies might push us back to the gold stand. Alternatively, my preference would be for a virtual currency backed by a currency that has legal status such as the USD or the Euro. The reality is the USD is already recognised as the international reserve currency. In my humble view this might be an area where the Canadian Government might be ahead of the curve with Mintchip which is a form of digital currencies which enormous opportunities for both consumers and business with one slight difference from Bitcoin. Mintchip will be backed by the Canadian Dollar.

d. Requirements for governance, internal controls, risk management, privacy and security. My view is that we are likely to see similar requirements to how banks and other FIs have to disclose information on their capital, risks and models used. This will include requirements for managing transactions, ledger and malleability.

e. Requirements for AML/ATF compliance to mitigate money laundering and terrorist financing risks. The key challenges for Bitcoin firms will be meeting the raft of documentation requirements and reporting to FINTRAC, FINCEN and other financial intelligence units (FIUs) around the globe.

d. There may even be requirements for the creation of safety net similar to a depositors’ insurance scheme like that of FDIC in the US or CIDC in Canada. Remember that in the traditional financial system we already have discussions taking place on the subject of too big to failure issue. Taxpayers should not have to pay for failure of Bitcoin firms.

Mt. Gox and Liberty Reserves will influence the design of regulation and safety net for Bitcoin. The benefit of regulations is that increase market discipline and capital adequacy will help to eliminate regulatory discretion to forbear.

Above I have attempted to highlight some of the specific components of a regulatory framework for Bitcoin to guard against crises, speculation and abuse. Just as the 2008/2009 financial crisis taught us, Bitcoin firms too cannot be left to their own devices. The state needs to set and enforce the rules here as well. Registration and capital requirements are a must for the future of Bitcoin and virtual currencies. Firms must be able to demonstrate their resilience to crises. Mt. Gox should have being forced by the Bitcoin community to demonstrate that it was addressing the challenges that first surfaced in 2013 and that it had contingency and crisis management plan for an orderly dismantling of the firm in the event of failure. Consumers of Mt. Gox will now have to wait out a lengthy bankruptcy and litigation process to know how much of their money they will recover.

There will need to be regulation of high-frequency trading and the ban activities that might be detrimental to the system. The sharing of the cost of failure/crisis through some kind of insurance scheme or safety net is also important. There has to be increased market and product transparency.

At the same time governments and regulators including law enforcement will need appropriate tools and skills to monitor and regulate Bitcoin.

Finally the regulation that emerges should not hinder technological development and progress and therefore, should be pragmatic. It should not force Bitcoin underground. I also believe that the regulation that emerges should be based on a globally accepted stand that involves international cooperation and exchange of information.

Bitcoin is on its current trajectory does not look so well as the currency of the future. However, with changes to transparency and regulation Bitcoin image could change and consequently withstand the test of times.

Sources:

Antonopoulos, Andreas.”Bitcoin security model: trust by computation A shift from trusting people to trusting math.” February 20, 2014. http://radar.oreilly.com/2014/02/bitcoin-security-model-trust-by-computation.html

Bradbury, Danny.  “Canada’s Finance Minister Prepares to Regulate Bitcoin.” February 13, 2014. http://www.coindesk.com/canadas-finance-minister-regulate-bitcoin/

Faggiano, Mark. “Tax Trouble May Burst The Bitcoin Bubble For Merchants.”February 24, 2014. http://www.forbes.com/sites/groupthink/2014/02/24/tax-trouble-may-burst-the-bitcoin-bubble-for-merchants/

Gomzin, Slava. “Bitcoin payments will face big challenges heading to brick-and-mortar (but it’ll get there)” January 26, 2014.  http://venturebeat.com/2014/01/26/bitcoin-payments-will-face-big-challenges-heading-to-brick-and-mortar-but-itll-get-there/

Greenwood, John “Canadian Mint ready to test its own digital money project.” September 19, 2013. http://business.financialpost.com/2013/09/19/canadian-mint-pushes-ahead-in-murky-world-of-crypto-currency-with-mintchip-project/

Knight, Sophie and Yamaguchi, Takaya “Japan says any bitcoin regulation should be international” February 27, 2014. http://www.reuters.com/article/2014/02/27/us-bitcoin-mtgox-idUSBREA1Q1YK20140227

Wagstaff, Jeremy. “Beyond Mt. Gox, bitcoin believers keep the faith, see more robust system.” February 26, 2014. http://www.reuters.com/article/2014/02/26/us-bitcoin-future-idUSBREA1P0OT20140226

“New York regulator moving ahead on bitcoin regulation.” February 11, 2014. Reuters. http://www.cnbc.com/id/101408527

“Hackers ruin Canada-based Bitcoin bank.” Reuters and Haaretz. March 5, 2014

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog  http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin.

Refuse to Lose

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be?”  - Marianne Williamson

My wife and children will tell you that every morning I am up at 5am sharp. I start each day with my meditation and reflection. After that I do my daily stretches. Then I catch up on the news and current affairs. I also use part of that time to get some work related or professional development reading done. If I am planning to write a post for my blog, McKenzie’s Voice I will also use some the time to explore themes and topics. At around 6am I prepare breakfast, take a cup of coffee upstairs for Michelle and I will also have a cup of coffee. My 8am most mornings I am in full work mode. If I have to commute for work I am usually in the office by latest 9am. This is a part of my basic discipline or regimen. It is part of my routine and I am very consistent. For me this is like clockwork. I am methodical. My wife and children will likely tell you that in this respect I am a little dull and highly predictable. However, for me it is this basic discipline that helps me to develop the mentality to refuse to lose.

This kind of basic discipline is part of what I believe is required for me to succeed in life. In previous posts I shared with you that I may be considered a delusional optimism. By this I mean, despite knowing that a high percentage of business fail, as a business consultant I resolutely believe I will be successful. Most people might consider this be blind faith or even insanity. However, since I started my consulting practice in 2006, I have successful secured and completed projects in over 20 countries stretching across the Caribbean, Asia and Africa.

My actions are not based on blind faith and you too should not be directed by blind faith. Just as I have, you too should have a clear vision and goals. Vision requires farsightedness as well as an understanding of the skills and information you require to success. Being a delusional optimism does not mean I move forward without a sense of purpose. For example, a key goal for me in 2014 is to break in the professional speakers’ market. This is a goal that I started working on from very early in 2013. What is your vision? What are your goals?

I have invested heavily into developing marketable products such as my Leaders Leave Legacies Workshop with a view for future gains. I look for speaking opportunities around the Greater Toronto Area. My actions today are deliberate and purposeful in order to produce the desired results I am seeking. I am self-motivate and that is why without failing each morning I pull myself out of bed full of energy and excited to taking the challenges of each day. My motives guide my decisions and actions. Are you motivated? What actions are you taking to achieve your goals?

How do I know if I am succeeding? I know I am succeeding because within the Greater Toronto Area I am constantly getting calls to be guest speaker at various events or to conduct workshops. In May, I have an invitation to deliver a workshop at the Toastmasters District 81Conference in Antigua and Barbuda under the theme "Unlock Your Potential." My presentation will be on the subject “Building a Solid Foundation.”

So what does it take to succeed? It takes discipline, clear vision and goals and self-motivation to succeed. It also takes the mentality of refusing to lose. It is recognising that there will be challenges and resistance. It is acknowledging that nothing that you want in life will be handed to you freely. One of my favourite quotes is from the 2006 movie Rocky Balboa starting Sylvestor Stallone in which 60-year old Rocky gives his son a heart-to-heart reprimand about how he needs to stop blaming and take charge of his life. Rocky said “Let me tell you something you already know. The world ain’t all sunshine and rainbows. It’s a very mean and nasty place, and I don’t care how tough you are, it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain’t about how hard you hit. It’s about how hard you can get hit and keep moving forward; how much you can take and keep moving forward. That’s how winning is done! Now, if you know what you’re worth, then go out and get what you’re worth. But you gotta be willing to take the hits, and not pointing fingers saying you ain’t where you wanna be because of him, or her, or anybody. Cowards do that and that ain’t you. You’re better than that!”

You develop the mentality to refuse to lose when you acknowledge that you will face challenges and resistance. By overcoming those challenges and pushing through the resistance you build stamina and the skills you require to succeed. Today I can only encourage you to keep moving forward despite the challenges and resistance you face in your lives. I have being hit hard in my life. In 2009, in addition to the death of my mother, I took a financial hammering that threatened to shake the core of my confidence but I kept pressing forward.

To be disciplined requires stamina and a willingness to go beyond what most others are not willing to do. In 2011, when I went to Afghanistan as the financial sector expert, I knew it would provide me with a unique experience of understanding some of the key challenges of development in a conflict zone. Today I am among a select group of experts globally with such practical experience. I did not allow my fears to get the better of me. To be successful you have to take some risks. Could there have been serious consequences going to Afghanistan? Absolutely. But you have to take calculated risks as this is the only way you will succeed. You will succeed where others fear to take action.

Your mentality to refuse to lose is also fueled by your ability to be creative and innovative. Be bold and brave. For example, in February I saw an opportunity opened up relating to Bitcoin and virtual currencies including debates on how to regulate this new product. I jumped at it leveraging my knowledge of finance and regulations. I did a presentation to TD Global Anti-Money Laundering Group – Testing on the subject. I started a Linkedin group called Bitcoin and Virtual Currencies Regulatory Development. Since then I have posted two blogs I have written on the subject and three of my PowerPoint presentations on Bitcoin. Last Friday, I received a request is for me to share my perspective and insights on the issue and development of Bitcoin under the theme “Bitcoin regulatory development: a global perspective” at the World Bitcoin Conference 2014 in Kuala Lumpur, Malaysia. I have also done an interview with a media outlet in New York on whether Bitcoin can be a part of the development solution in Africa. These are opportunities that came about as result of my ability to be creative and innovative.

I share all of this to encourage you to develop the mentality to refuse to lose. You should take risk, be brave and bold, be creative and innovative.

Finally no matter what act with dignity and stay humble. Treat everyone with respect, publicly and behind closed doors. Success is satisfying when accomplished with dignity, humbleness and humility.

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog  http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin.

Bitcoin and the Importance of Regulation

This is a continuation of my discussion on why I believe Bitcoin and other virtual currencies should be regulated. Two weeks ago I had the opportunity of participating in a Meet-up hosted by Anthony Di Lorio, the executive director of Bitcoin Alliance of Canada, a non-profit organization at Bitcoin Decentral in Toronto. From my estimations there were over 50 Bitcoin enthusiasts salivating either for more information on Bitcoin or trying to determine how to get involved in the “gold rush” to acquire Bitcoins. It was evident to me that the general public is getting involved in Bitcoin and from this perspective governments and regulators have to devise appropriate mechanisms to safeguard the public interest while allowing room for technological development and the evolution of virtual currencies.

From a theoretical perspective Bitcoin functions as any other unit of account with the only difference being it has no physical counterpart with legal tender status. As the European Central Bank stated in its paper titled “Virtual Currency Schemes” the absence of a distinct legal framework leads to other important differences when Bitcoin is compared with other currencies such as the US Dollar or the Euro. The first difference is the absence of any central issuing authority which in most cases is central banks. As governments and policymakers contemplate regulating Bitcoin, the absence of central issuing authority is an important point to note as the issuers of Bitcoin are typically non-financial privately held companies that fall outside of financial sector regulation and supervision arrangements.

Interestingly, this is a challenge that global financial system and regulators was confronted with not so long ago. For example with the emergence of Internet Banking one of the questions that policymakers had to address was whether to allow Internet only banking such as ING. It was also an issue that we had to address with the proliferation of mobile banking technology. The questions at the time with mobile banking was whether we should allow only brick and mortar banks to offer mobile banking or should it be telecommunication companies or should it be companies supported by both brick and mortar banks and telecommunication companies. A related issue to determining who should or should not be regulated for virtual currencies is a question we will have to answer. We will also have to have a clear definition for currencies and more importantly virtual currencies. Let us face, I have a significant amount of the Canadian Tire money thrown down all around my house which are virtually useless.

Another important difference between virtual currencies and other currencies is the link between virtual currency and traditional currency (i.e. currency with a legal tender status) is not regulated by law. The implication of this is that it might be problematic or costly to redeem funds. The final difference is the fact that the currency is denominated differently (i.e. not euro, US dollar, etc.) means that complete control of the virtual currency is given to its issuer, who governs the scheme and manages the supply of money at will.

Policymakers and regulators are more likely to be interested in virtual currency schemes that are open and/or linked to the real economy. Virtual currency schemes that have a unidirectional flow (usually an inflow) involving a conversion rate for purchasing the virtual currency that can subsequently be used to buy virtual goods and services and in exceptionally cases buy real goods and services would be of interest to government and regulators. They are also interested in virtual currency schemes that have bidirectional flows. In this case the virtual currency acts like any other convertible currency, with two exchange rates (buy and sell) and it is subsequently used to buy virtual goods and services as well as purchase real goods and services. Virtual currency schemes that involve bilateral exchange rates create opportunities for speculative behaviour. In addition, if they are used to buy real goods and services they are competing with traditional currencies.

Virtual currencies are of interest to government and regulators especially when the following are considered: a) price stability, b) financial stability, and c) payment system stability. As financial sector regulatory and supervisory experts I would like to focus on financial system stability. According to the ECB the stability of financial markets is based on its ability to withstanding shocks, thereby mitigating the likelihood of disruptions in the financial intermediation process which are severe enough to significantly impair the allocation of savings to profitable investment opportunities.

Based on my understanding of Bitcoin and other virtual currencies issuers of Bitcoin have enormous power in controlling supply and consequently have the ability to be price-makers using fixed or semi- fixed or semi-fixed exchange rate. In traditional financial markets, financial institutions are required to treat their customers fairly. In securities markets for example, insider trading and market manipulations are prohibited. I am not for one minute suggesting that Bitcoin prices are being manipulated. However, I do suspect that innovators have a clear advantage in understanding the convoluted and complex mathematical algorithm or hash function.

Proponents of Bitcoin argue that it is this convoluted and complex process that makes Bitcoin as a virtual currency safe. They argue that Bitcoin is a distributed consensus network that maintains a secure and trusted distributed ledger through a process called “proof-of-work.” Unlike the traditional banking and payment system that achieves trust via various levels of access, KYC and other vetting mechanism, in the case of Bitcoin trust is achieved through computation. Trust in the network is ensured by requiring participants to demonstrate proof-of-work, by solving a computationally difficult problem. The level of complexity does not mean the Bitcoin system will be free of bad actors who might “fake” trust. We also know now that malleability can wreak havoc on Bitcoin exchanges with denial of services attacks. In fact last week for example we learned that hackers ruin Canada-based bitcoin bank, Flexcoin as it lost $600,000. This came a week after Mt. Gox's collapse and ultimately bankruptcy filing in Japan.

Despite “proof of work” that results in trust through computation I still believe rules and regulations are required to reinforce order in Bitcoin. Regulations will add guidance to the behaviour of actors and will help to avert chaos. Bitcoin might be an alternative to the loss of trust within our financial system but is it is panacea purely by itself? Will it be optimal solution if supported by pragmatic regulations?

Proponents of Bitcoin argue that our financial system is broken. We have lost trust in governments because of their poor fiscal and monetary policies that has contributed to weak economies, unemployment, inflation and volatile currencies. We have lost trust in banks and other financial institutions because of their reckless practices that in 2008 and 2009 led to the worst financial crisis since the Great Depression. We have lost trust of regulators because of their forbearance. Regulatory forbearance is not about supervisory incompetence but, rather, the potential for a fully briefed regulator to decide not to intervene. There may be many legitimate occasions when non-intervention is the right call but, when judged with the benefit of hindsight, more supervisory interventions, made sooner, could have ameliorated some of the worst of the issues arising out of the financial crisis.

With our loss of trust in so many actors, why should we today trust those behind Bitcoin? Will those with superior computational skills and computing technology and power act any differently than other actors?

Sources:

Antonopoulos, Andreas.”Bitcoin security model: trust by computation A shift from trusting people to trusting math.” February 20, 2014. http://radar.oreilly.com/2014/02/bitcoin-security-model-trust-by-computation.html

Bradbury, Danny.  “Canada’s Finance Minister Prepares to Regulate Bitcoin.” February 13, 2014. http://www.coindesk.com/canadas-finance-minister-regulate-bitcoin/

Faggiano, Mark. “Tax Trouble May Burst The Bitcoin Bubble For Merchants.”February 24, 2014. http://www.forbes.com/sites/groupthink/2014/02/24/tax-trouble-may-burst-the-bitcoin-bubble-for-merchants/

Gomzin, Slava. “Bitcoin payments will face big challenges heading to brick-and-mortar (but it’ll get there)” January 26, 2014.  http://venturebeat.com/2014/01/26/bitcoin-payments-will-face-big-challenges-heading-to-brick-and-mortar-but-itll-get-there/

Greenwood, John “Canadian Mint ready to test its own digital money project.” September 19, 2013. http://business.financialpost.com/2013/09/19/canadian-mint-pushes-ahead-in-murky-world-of-crypto-currency-with-mintchip-project/

Knight, Sophie and Yamaguchi, Takaya “Japan says any bitcoin regulation should be international” February 27, 2014. http://www.reuters.com/article/2014/02/27/us-bitcoin-mtgox-idUSBREA1Q1YK20140227

Wagstaff, Jeremy. “Beyond Mt. Gox, bitcoin believers keep the faith, see more robust system.” February 26, 2014. http://www.reuters.com/article/2014/02/26/us-bitcoin-future-idUSBREA1P0OT20140226

“New York regulator moving ahead on bitcoin regulation.” February 11, 2014. Reuters. http://www.cnbc.com/id/101408527

“Hackers ruin Canada-based Bitcoin bank.” Reuters and Haaretz. March 5, 2014

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog  http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin.

Kindness

“Guard well within yourself that treasure, kindness. Know how to give without hesitation, how to lose without regret, how to acquire without meanness.”  ― George Sand

Thanks for your continued support and kind words of encouragement. My blog McKenzie’s Voice is now in its sixth month. I don’t have an email list to direct email my blog and I don’t spend time tracking traffic to my blog. However, I know from the emails I received that you enjoy reading my blog. I sincerely appreciate the time you take to read my blog and the encouraging emails you send me.

Last week Ambreen Khan sent me the following email:

Hi Mark,

I am truly impressed by your efforts for this noble cause. I was waiting for your Blog since 22nd Feb to know the details about the coldest night. The weather is too cold these days but I am happy, it wasn't that cold on 22nd and allowed you & other ambitious people like you to run for a noble cause. You all are awesome who participated in this walk,....especially your new friend John T. 

Truly Awesome!

Best Regards,

Ambreen

I am encouraged by your emails. I am committed to continue blogging and sharing positive messages that will keep you inspired and motivated.

It is easy for us to lose hope when we see and hear of the despair in our communities and around the world. There is severe poverty, malnutrition and pandemic of various diseases in some parts of Africa, Asia and Latin America. There is unrest in Syria, the Ukraine and other parts of the world. On Friday a Malaysian Airlines Boeing 777 carrying 227 passengers and 12 crew members, including 2 infants went vanishes from radar. Closer home as I walk to the office in the mornings I see homeless people sleeping on the side of the streets.

How do we remain positive and hopeful with such despair and sadness? How do we maintain hope in humanity?

I think one way is through kindness. Please allow me to share with you the simple acts of kindness I received last Friday in Guelph, Ontario.

Kindness is a virtue in many cultures and religions. It is a behaviour marked by ethical characteristics, a pleasant disposition, and concern for others. According to Aristotle’s Rhetoric, Book II kindness is defined as helpfulness towards someone in need, not in return for anything, nor for the advantage of the helper himself, but for that of the person helped. Acts of kindness does not only benefit receivers of the kind act, but also the giver who feels a sense of joy and contentment.

One of my core values is being kind to others. For this reason I have made it my duty to be actively involved in my community. In one of post titled 5 Wonderful Benefits of Community Involvement I listed the following benefits of being involved in your community:

• It provides an opportunity to learn more about other cultures,
• It provides an opportunity to make new friends
• It provides an opportunity for me to practice my teaching skills and develop my community outreach skills
• It provides me with an opportunity to contribute towards the growth of my community and its future
• It provides a sense of satisfaction and excitement on the faces of those who I have inspired and empowered.

There is a sixth benefit that is derived from being involved in your community and that is the opportunity to experience the true kindness of humanity. Last Friday, I was reminded that an act of kindness never goes futile.

On Friday I had the opportunity to attend the Area 67, Division W, Toastmasters District Evaluation and Speech Contests in Guelph, Ontario at The Frank Hasenfratz Centre of Excellence in Manufacturing at Linamar. The event was organised by Harry Jansen and his amazing team of volunteers with kind support of the management and staff of Linamar. As the Area Governor I am responsible for hosting the event. Hosting such a successful event cannot be accomplished without an amazing team and the kindness of others.

On Friday I had to travel directly from work in Toronto, Ontario to Guelph. My project manager, Rudy Duschek, was kind enough to let me take off from work early to catch the 3.30pm bus from Union Station to Bramalea GO Station in Brampton. From there I boarded the number 39 Go Bus to Guelph Central GO. When I arrived at the Guelph station at 5.40pm Gary Tai, a member of Linamar Toastmasters Club, was waiting for me. Both Harry Jansen and Gary Tai went out of their ways to ensure that I arrived at the meeting facilities on time for our 6.30pm start time. As it turned out Gary and I had more in common than our interest in Toastmasters. We are connected by the country of our birth – Jamaica!

Grace Rasmussen and Jonathan Velasco also went above and beyond to ensure that all the contestants were briefed and that all the meeting roles were filled. Without their kindness I could not have hosted a successful Evaluation and Speech Contest. Their help and kindness made me feel special. But there was more kindness!

Once in Guelph, I had no way of getting back home to Brampton, Ontario after the contested end about 9.15pm. In stepped Isabel Hershaw and her husband, Bill. They welcomed me in their lovely home for the night. When we arrived at their home about 10.15pm, Isabel gave Bill and I each beer, while she sipped and tea. For the next hour or so they shared with me their wealth of experience in marriage and parenting. They spoke about their experience as immigrants. They spoke about the benefit of hard work and kindness. At 7am Saturday morning Bill made me coffee and breakfast. He then drove me to the Guelph Central GO Station. Before we hugged and bid each other goodbye, Bill who is 83 years old ensured that I boarded the right GO Bus.

The experience for me in Guelph, Ontario was heavenly. It inspire me to remain hopeful in mankind.

Please share your acts of kindness.

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog  http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin.

Bitcoin and the Importance of Regulation Part 1

Over the next few days I will use my blog to add to the debate on Bitcoin and the importance of regulation. Given my more than 15 years' experience in financial services, regulation and compliance I am confident that I can make a significant contribution to the debate and the way forward for Bitcoin. This is the first part an article I have written on Bitcoin and the Importance of Regulation. In this post I focused on the recent failure of Mt. Gox and draws on comparison with the rapid failure of Continental Illinois National Bank and Trust in 1980s.

  

The shutting down of Mt. Gox, one of the largest Bitcoin exchanges, and the alleged disappearance of 744,408 bitcoins from the exchange — about $365-million have caused shock waves around the world in the virtual currency community.

The purpose of this post is to add to the debate on why Bitcoin and other virtual currencies should be regulated by providing clarity on Bitcoins and other virtual currencies and there links to the traditional financial system. In recent weeks there have been important announcements from Canada’s Federal Finance Minister Jim Flaherty that the government and regulators will explore developing regulations for Bitcoin and other virtual currencies. He noted in his 2014 Budget Speech that it is important to continually improve Canada’s regime to address emerging risks, including virtual currencies, such as Bitcoin, that threaten Canada’s international leadership in the fight against money laundering and terrorist financing. Benjamin Lawsky, superintendent of New York's Department of Financial Services also revealed new details of plans to govern virtual currency firms in the state in order to protect consumers and combat money laundering.

Why are these announcements from governments and regulators important? The reality is whether we like it or not Bitcoin and other virtual currencies are a form of medium of exchange that comes with their own dedicated retail payment systems. These two factors makes the technological innovation of Bitcoin and possible the transmission of risks relevant to a number of key areas of the global financial system.

It seem to me that Bitcoin firms are no different than airlines responsible for taking passengers from point A to point B. Airlines have enormous power in terms of pricing and the servicing of their aircrafts. Governments and regulators have a responsible to ensure that airlines don't abuse such powers. They want to know that consumers are treated fairly and that airlines act responsibly when it comes to servicing and maintenance of their aircrafts. The same can be said of telecommunication firms, oil and gas and you name it. My point here is in the case of Bitcoin as it gains greater public acceptance, the creators and providers’ power over consumers will likely increase and so does the risk for abuse. I share this view on the basis that Bitcoin is relatively sophisticated and complex form of currency. At recent Meet-up in Toronto, I met one lady who was seeking out information on how to acquire investments while admitting that she also which she knew more about money and finance. In my view, government and regulators as they do with banks and other financial institutions have a responsible to ensuring accountability and transparency of Bitcoin and other virtual currencies and their operators. They have to do this to safeguard the public interest.

Mt. Gox bankruptcy filing and the alleged theft of over 700,000 Bitcoins will be a defining moment in the evolution of Bitcoin. This is no different than the collapse of Continental Illinois National Bank and Trust in 1980s. Continental Illinois is a good example of how quickly problems revealed at a financial entity can turn to disaster for a financial entity once held in high regards by the public. Mt. Gox's experience is no different and just as Continental Illinois was a watershed event in banking regulation, the demise of Mt. Gox will play a key role in how regulations for Bitcoin emerges. Consumers backlash of Mt. Gox is no different than the run on Continental Illinois. The disorderly failure of Mt. Gox, a significant Bitcoin exchange, has highlighted important vulnerabilities in the Bitcoin system that regulation can help to address. Opaqueness and speculation is already a significant concerns and the failure of a key player will not ease those concerns but rather might ignite further concerns. In a nutshell the abuse of Bitcoin by criminals as in the case of Liberty Reserves/Silk Road and the rapid failure of Mt. Gox will be the key driving forces with how the regulations emerges. Regulation is required to mitigate and manage such risks and failure.

Sources:

Bradbury, Danny.  “Canada’s Finance Minister Prepares to Regulate Bitcoin.” February 13, 2014. http://www.coindesk.com/canadas-finance-minister-regulate-bitcoin/

Faggiano, Mark. “Tax Trouble May Burst The Bitcoin Bubble For Merchants.”February 24, 2014. http://www.forbes.com/sites/groupthink/2014/02/24/tax-trouble-may-burst-the-bitcoin-bubble-for-merchants/

Gomzin, Slava. “Bitcoin payments will face big challenges heading to brick-and-mortar (but it’ll get there)” January 26, 2014.  http://venturebeat.com/2014/01/26/bitcoin-payments-will-face-big-challenges-heading-to-brick-and-mortar-but-itll-get-there/

Greenwood, John “Canadian Mint ready to test its own digital money project.” September 19, 2013. http://business.financialpost.com/2013/09/19/canadian-mint-pushes-ahead-in-murky-world-of-crypto-currency-with-mintchip-project/

Knight, Sophie and Yamaguchi, Takaya “Japan says any bitcoin regulation should be international” February 27, 2014. http://www.reuters.com/article/2014/02/27/us-bitcoin-mtgox-idUSBREA1Q1YK20140227

Wagstaff, Jeremy. “Beyond Mt. Gox, bitcoin believers keep the faith, see more robust system.” February 26, 2014. http://www.reuters.com/article/2014/02/26/us-bitcoin-future-idUSBREA1P0OT20140226

“New York regulator moving ahead on bitcoin regulation.” February 11, 2014. Reuters. http://www.cnbc.com/id/101408527

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin.

A Wonderful Friend

On Saturday, February 22, 2014 I participated with more than 200 walkers and runners in Regeneration Outreach of Brampton’s Coldest Night of the Year Campaign. Together we raised over $51,000 to help Regeneration provided daily breakfast and care for the homeless in Brampton.

On the evening of the event I met John T. a 76 year old retiree from Mississauga at the start of the walk. At the start of the walk our goal was to walk 10K. While the theme of the event was the Coldest Night of the Year, it was far from being the coldest night as the temperature and wind chill was relatively mild. The greatest challenge for us and the other 200 participants was the ice on the sidewalk. In fact heading east on Queen Street John T. slipped once and luckily he did not hurt himself. We both acknowledged that the sidewalks were treacherous and therefore, at times we walked on the side of the road. At 46 year old I had to be on top of my A-game to keep slightly ahead of John T. He is brisk walker and his endurance is remarkable and admirable.

John T. and I were among the leading walkers and runners. For our two man team I became the de facto navigator while John set the pace. Heading north on Dixie, I missed the markers to turn west on Howden Street. This would have taken us back to the starting point at Century Gardens Recreation Centre on Vodden Street. Consequently, we ended walking north to Williams Parkway where we eventually turned and headed into a westerly direction. On several occasions we had to walk on the side of the road facing the oncoming traffic because the sidewalks were too icy and slippery. Some motorists had to literally come to full stop when they saw us. Others honked their horns perhaps annoyed by two grown men walking on such a busy street.

For me walking on Williams Parkway was extremely frightening. I can only imagine that John T. was scared too but if he was never showed any signs of fear. The street was dark and the vehicular traffic was heavy. At one point I tried calling my friend Myrol to see if he could come and pick us. I even thought of flagging down a police car for help.

John T. and I walked for close to two hours. Along the way we shared a lot about ourselves with each other. I learned that his youngest child was at least 2 years older than I am and that he had grandchildren as old as Marchelle and Malcolm, my two older children. We quickly developed a level of trust and respect for each. Our trust and respect helped us get through the path of our journey along Williams Parkway that was most dangerous. Eventually from Williams Parkway we turned onto Rutherford and headed back to our point of origin. At the end of the walk we high five and hugged each other. From my estimation we walked about 15K and during that time developed trust, respect and friendship. When we eventually bid goodbye to each other at Century Gardens Recreation Centre I gave John T. one of my business cards and told him to please keep in touch.

Below I share an email I receive from John T. late Thursday, February 27, 2014 just before I retired:

Dear Mark,

Sorry it took so long to e-mail you – I had not forgotten you but had misplaced your business card.  Luckily Henny, my wife found it, so here goes.

First of all, thanks again so much for letting me walk with you and for taking such good care of me. Henny, too, says thank you.  We sure walked a good distance that evening and I guess that at the end I was flagging a bit, but you always patiently waited for me. I have never walked so far over such terrible sidewalks.  I’m glad that the weather was not so cold as it is now, I would have frozen to death for sure.

You are a wonderful friend and I would like to see us meet again.

Again, many thanks

John T.

Below I share my reply to John T.’s email:

Hello John,

Your email warms my heart. I am so happy to receive your email and very kind words. I have spent a lot of time reflecting on my purpose in life and have concluded that one my purpose is to impact the lives of those whom I come in contact with. I was deeply troubled when we were walking along Williams Parkway as it was extremely treacherous and busy. I was extremely worried and at one point I actually tried calling my friend to see if he could come and get us.

I share this now to say that I do care about you. I was at times a bit apprehensive but at those moments I knew my task was for us to return safely. John we high fives and embraced at the end...and I did say we were brought together for a purpose...and for me that purpose was to form friendship, admiration and respect for each other. John, if I get to 76 and can walk the distance you walked last Saturday I think I would have done well.....you inspire me!

Please tell Henny hello for me and please call me anytime.

Sincerely,

Mark

Have you met a wonderful friend recently? How did you meet?

Mark McKenzie is a leading Subject Matter Expert in financial services regulation and supervision as well as a professional motivational speaker, corporate trainer and youth mentor.  He can be contacted by email mastbmckenzie@gmail.com or by telephone 647-406-4622. Read my blog http://mastbmckenzie.blogspot.ca/ and always write me a comment and share. Follow me on Twitter @mackynacky. Connect with me on www.youtube.com, Google+, Facebook and Linkedin.