Can national currencies free themselves from the constraints of the nation-state?
Could blockchain underpin a new currency and bring on the denationalization of money? A new publication makes a strong case for it. In his latest book, Money Without Boundaries, fintech expert Thomas J. Anderson suggests that, compared with other currencies, blockchain-managed money markets can be more transparent and straightforward, easier to monitor, understand and, ultimately, to trust.
Anderson posits that, because blockchain can be used to create an infinite number of items with limited supply, then limited supply by itself is no longer valuable. But if a system can achieve both limited supply and economic value, then a new global currency facilitated by blockchain becomes a risk-free store of value. While this isn’t a new idea in itself, Anderson proposes that the application of new technologies to well-established economic thinking may change the game.
Are people and institutions ready? It was only a short time ago that the phrase “cashless society” entered the lexicon as a concept. Now, a huge proportion of transactions are cashless—for both institutions and individuals.
Against a backdrop of rising global economic risks, such a decentralized, self-regulating system could have vast implications for the global financial system.