The evidence is everywhere, yet only visible to some. We are in the midst of a historical battle over the future shape of money. To give a sense of the shift, a recent discussion paper from the Bank of England illustrates a scenario in which 20% of deposits will siphon off from commercial bank accounts to “new digital money”, meaning FinTech applications, cryptocurrencies and stablecoins, as well as new central bank-issued digital currencies.
In this emerging landscape, questions – about the disappearance of cash, of who gets to ‘print’ new digital moneys or trillion-dollar coins and control their circulation, and even decide de facto monetary policies – are all being renegotiated between central banks, governments, technology companies and commercial banks. Meanwhile, crypto-enthusiasts, excited about the uses of their favourite tech, are disrupting, prodding or playing along, to the alternating excitement and dismay of community currency activists. It is not yet clear who has our interests best at heart.
Let me briefly present three exhibits that offer glimpses of a landscape that is radically shifting.
