One of the challenges I face when discussing the future of money with people and audiences is a sense of inertia and lack of perspective on the imminence of the change. Money as we know it has been around for so long that it is difficult to conceive the true impact and disruption that the digitisation of this most basic of social commodities will have.
Think of the first person who had the courage to take a flat copper disk in exchange for their produce rather than the bartered items they were expecting. It must have felt like they were on a different dimension of existence. Then the first person to accept that a soft, foldable, burnable, destroyable piece of paper was more valuable for trade than a solid, incorruptible and enduring disk of metal.
Yet, as each of these individuals took that first tenuous step they saw the value and benefit of the change they were a part of…. Why? Because, these changes were not isolated shifts but were part of the overall transformation of society as it was known.
Today we are at a similar threshold. The transition to a society where digital dominates the manner in which we transfer, remit, and acknowledge value is happening, and is inevitable. It is affecting different industries and sectors at different rates and in different ways, but it IS affecting everything. In the words of Captain Kirk from Star Trek whenever they found a new planet: “It is life Jim, but not as we know it….”
The reality is that money has already changed by stealth, while you weren’t watching. At the moment only 6% of the value of the global economy is represented by cash, the other 94% is represented in 1’s and 0’s on computer servers in banks and central banks across the world…. your money is already digital – you just don’t know it yet.
In your next strategic or planning meeting put the following discussion point on the agenda.
“If our world and industry is becoming more digital, and society at large is digitising too then money will be drawn into this cycle of change.
- How could the digitisation of money change the way we do business?
- What are the risks?
- Are there any areas of our business that are ready for this shift, and
- How could we do this smartly and effectively?”
Connect with us here to have Ray de Villiers, author of today’s Tuesday Tip, engage with your team on why and how they should be considering the Future of Money. ‘The Future of Money’ is not just for the financial services sector– it’s for everyone who uses money, enters transactions and has a bank account (yes, that’s everyone). It demystifies the revolution taking place in the financial world, and explains how the digital world will change money and how digital money will change the world.
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