In the New Money Review podcast, technologist Dave Birch predicts a period of seismic change in the global monetary system.
Birch is a commentator on digital financial services and the author of a well-received book on the future of money, “Before Babylon, Beyond Bitcoin”, published in 2017.
Birch says that we are witnessing the emergence of many new forms of money, while the post-World War II “Washington Consensus” of national fiat currencies is at risk of breaking down.
“Historically, when societies have been through big changes, money changes as well,” Birch says.
“The crash of a decade ago has made many people think the current monetary infrastructure is not fit for purpose.”
“And the money of the last age may not be optimal for the post-industrial economy we are now in,” he says.
In the podcast, Birch says that there has been a long-term trend towards decentralisation in the creation and distribution of money, a trend that is accelerating with the emergence of cryptocurrencies, peer-to-peer and other digital money.
Collectively, we may still be in the early stages of witnessing the impact of technology on money, says Birch.
The emergence of bitcoin aside, “We haven’t yet had a technological revolution in response to the crash,” says Birch, “a revolution that would have meant more transparency and accountability.”
“But there’s every reason to think that a properly regulated market in new bearer instruments like cryptocurrency tokens and initial coin offerings (ICOs) will actually be very big and very successful.”