More a monograph than a paper highlighted today from Zara Kakushadze and Jim Kyung Soo Liew in which they put forward an incredibly simple idea. One who’s time appears to have been at hand for some time but one COVID-19 might hasten into reality.
Money is dirty the researchers point out. Not just in a metaphorical sense [Never got that meself?] but in a very real physical sense. Not a few stores in my hometown have recently put up signs saying they’d prefer contactless payment for the time being; but, given its all round convenience, I expect they’ll prefer it in future as well.
You’re probably using some kind of digital money already. If you’re in Hong Kong it’s called an Octopus Card, if you’re in London it’s an Oyster Card and if you’re in New York it’s the soon to be upgraded/replaced Metro Card. All of these systems though are basically ‘closed’. For digital money to be really useful it has to be more easy to manipulate.
N.B. Craptocurrencies (Bitcoin etc.) are something else altogether and not part of this discussion. [Er, ‘Crypto’, surely? Ed.]
Who doesn’t want this? Well, for a start, Commercial banks, Central Banks, governments and (most likely) that global currency hegemon the United States. The researchers argue resistance is based on sloppy and outmoded thinking. Governments, in fact, would reap considerable benefits from this change. They’d get greater control of their currency (where did all those Euro500-notes go anyway?) and their economies would become more efficient; but so far vested interests have stymied progress.
China is leading the way and expects to begin the introduction of a government controlled electronic Yuan some time later this year (a big trial has been postponed due to COVID-19). My guess is it’ll be a hit.
From a digital currency it’s a very short step to a multi-country iCurrency which, if they can get their act together, would see the present hegemon remain in charge even if they wouldn’t be the outright controller of the new instrument.
Food for thought but with the manifest convenience this idea presents I bet if China’s trials go well, a rapid global transformation isn’t likely far behind? Read the full note via this link Digital Money.
Happy Sunday.