Becoming a Cashless Society

The 3rd Industrial (Blockchain) Revolution

The first Industrial Revolution was a phenomenon that didn’t take place all at once, as a matter of fact it took years for inventions to become mainstream and make an impact in the lives of everyday people around the world.  Take the steam engine, the first versions existed as far back as early 1700’s but it took the British Empire a century to get started.

Today, similarly the world lives amidst a Digital Revolution, Industrial Revolution 2.0, the blockchain is the next step in this paradigm shift.  Adopting blockchain technology could actually fulfill the promise of a decentralized, free and open society, who knows.

CryptoCurrency Luxury Investment Index

The luxury investment index assesses the performance of 10 key luxury investment sectors – cars, art, wine, coins, stamps, jewelry, colored diamonds, Chinese ceramics, watches and antique furniture. The ranking is based on 3rd party data that tracks the performance of high-end collectibles, ruling out safe havens, gold and property.

Lately, cryptocurrencies, in particular Bitcoin have outperformed every luxury sector collectible thanks to the community and its support.  Cryptocurrency is the dream of limited capital control on the amount of money that can be transacted at a given time set by banks.

Sweden among the Pioneering

The Bank of International Settlements (BIS) warned central banks to think seriously about the growing cryptocurrency markets.  Jens Weidmann, the head of Germany’s Bundesbank warned that digital currencies have the potential to make the financial crises in the future even more devastating.

This is made possible as more countries embrace cryptocurrency. Sweden has one of the highest adoption rates of modern information and communication fintech in the world.  Reports suggest that 900 of Sweden’s 1,600 bank branches no longer store cash, neither do they accept cash deposits – their ambition is simple, a cashless society.

This has left the central bank in disarray – should the bank introduce a digital form of government-backed money?  As a matter of fact many countries like China, Estonia and Russia are experimenting with their own blockchain coins.  The question now is, when cryptocurrencies hit main street and become regulated, who exactly should verify transactions?

Blockchain, Unplugged and Unlimited

In recent speeches both Christine Lagarde, Chief of the International Monetary Fund (IMF) and Mario Draghi have somewhat startled traditional investors with their rhetoric.  Christine Lagarde cited several factors that may drive adoption of digital currencies including safety, speed and transparency.  Meanwhile, the IMF continues to promote a balanced agenda to cryptocurrencies, it considers distributed ledgers to have the capability of revolutionizing the financial sector through cost reduction and deeper financial inclusion.  Mario Draghi added to this rhetoric that there is no way to ban or regulate Bitcoin.  While the European Central Bank (ECB) has no powers over the regulatory control of cryptocurrencies they do have control over EU member states wishing to issue national cryptos.  Example – the recent criticism of Estonia’s estcoin which has not been recognized as legitimate – a paradox? or early entry? Reasonably early entry.  Without a doubt cryptocurrencies are the future that so many aspired for.  Potential 21st century democracy.

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