“Cash” disappears from the world !? Accelerating cashless and new currencies

cryptocurrency 11-20

The move towards cashless is accelerating and cash is disappearing from our lives. What is pointed out as the background is the “limit” of current money. Meanwhile, various “next money” are beginning to be born one after another. Follow the accelerating movement toward cashless payments around the world and look at the future of money in the future.

◯Capitalism has reached a major turning point.

The “cash” produced by humankind has streamlined transactions and expanded trade around the world. However, the cash that has grown the economy in this way is now beginning to disappear rapidly.
Instead, “digital payments” using smartphones, IC chips embedded in the human body, eye and face authentication systems, etc. are emerging, and even countries that are trying to lose cash are appearing.

But it’s not just because it’s convenient that cash has begun to disappear from the world. It is said that the transformation of capitalism is involved there.

Until now, it has been believed that “if a lot of money goes out in the world, more people will buy things, companies will make a profit, and the economy will grow.” However, this value that money activates the economy is now shaking.

Professor Basker Chakraborti of Tufts University, who studies digital currencies,

“The current” money “can no longer revitalize the economy. Rather, cash has begun to become the” harm “of the economy.” (Professor Basker Chakraborti)

Due to the excessive increase in the circulation of money, various problems such as a large amount of cash flowing to criminal organizations or a plunge in the value of money pushing the national economy to the brink of bankruptcy are actually occurring all over the world. ing.

In order to solve these problems, it may be necessary to evolve the current money into a different form. Now, the search for future money that was unthinkable before has begun.

Myron Scholes, an emeritus professor at Stanford University who won the Nobel Prize in Economic Sciences,

“What’s happening right now is from the old economy to the new economy. A major shift in capitalism is about to begin.” (Professor Emeritus Shoals)

Capitalism has brought prosperity to humankind. What kind of world is spreading beyond the cash that was the driving force?

◯Currency value plummets Crisis in Venezuela, South America.

Where has the money that should have been increasing gone? For example, Japanese tansu deposits amount to 47 trillion yen, and corporate retained earnings amount to 446 trillion yen (Dai-ichi Seimei Keizai Kenkyusho). The increased money has been accumulated and is no longer being used. The fact that money is stuck year by year no matter how much the distribution volume is increased is clearly shown in the data showing how often Japanese money is spent.

On the contrary, Kenneth Rogoff, a professor at Harvard University who studies world currencies, points out that increasing money has even had an unexpected negative effect.

“In fact, it has become clear that much of the large amount of cash printed in the world is heading toward the so-called” underground economy “such as crime.” (Professor Rogoff)

In the United States, the size of the underground economy has grown to 143 trillion yen, which is 7% of GDP, and has reached an amount that exceeds Germany’s national budget. The underground economy refers to all illegal economic activities such as crime and corruption that are not taxed. It is said that the cash that has been increasing to revitalize the economy of the table is flowing into the underground economy.

An incident that symbolizes this is actually happening. In Mexico, a large bundle of $ 100 bills worth more than 22 billion yen was confiscated from the mansion of a stimulant trafficker.

But this is not the only problem with making too much money. Another serious problem is that the declining credit of money will drive the economy into bankruptcy, which is one after another in the world.

South America and Venezuela are at stake. Skyscrapers whose construction has stopped due to the cutoff of funds have become slums. The poverty rate has reached 87% and even starvation has begun to occur. Security has deteriorated rapidly, making it one of the countries with the highest number of violent crimes such as murder.

The cause is the plunge in the legal tender Bolivar issued by the government. As a result, prices soared, leading to an abnormal situation in which a pile of banknotes was required to purchase one cola. They are falling into hyperinflation, which is expected to reach 1 million% annually.

Why did this happen?

Venezuela’s national income has been supported by crude oil, which boasts one of the world’s largest reserves. But falling oil prices and US sanctions put Venezuela in an economic crisis.

The problem is that the government has increased the amount of money too much to make up for the reduced income. As a result, the “credibility” of money is lost and its value plummets. It took a lot of money to buy things.

What is happening in the town of Venezuela now? As a result of a shortage of cash all over the country because the amount of printed banknotes could not keep up, cash transactions collapsed, and bartering began there. People are exchanging food for food to survive the predicament, but some are in even more difficult situations. At Denny Perez’s house in the suburbs of Caracas, even the food he eats today is running out. Her youngest child has already been diagnosed with malnutrition and, if the situation persists, her family could starve to death.

◯Cashless to revitalize the economy Efforts of European countries.

On the other hand, Sweden is a country whose economy has been revitalized by an attempt to “stop spending cash.” In Sweden, many stores have refused cash, and the distribution volume has dropped sharply to 1.3%. Smartphone payments have spread in its place, and in this country, people are now living with an app called “SWISH”, from shopping in the city to donations to churches.

This attempt has revitalized the economy in Sweden. GDP has increased by 24% in five years.

Why on earth? According to an analysis by Associate Professor Niclas Arbitson, a leading Swedish cashless researcher, quitting cash lowers the psychological hurdles of buying things and makes it easier to pay.

“It has become clear that people tend to spend money frequently with digital payments. There is no doubt that it will have a positive impact on the economy. To pass money to industry and society, lose cash. That is very effective. “(Associate Professor Arbitson)

In addition, technology has emerged to reduce the hurdles for spending money to the utmost limit. By embedding a 12 mm long IC chip in the hand with a syringe, payment can be made simply by holding the hand over. The IC chip, which has no adverse effect on the human body, eliminates the need to take out the smartphone and open the application, and the speed of transactions is improved by nearly 50% compared to the smartphone.

In addition, such cashless society is also effective for crime. Bank robbery is also declining, as cash becomes harder to steal if it replaces data.

In Germany as well, novel ideas for getting individuals and businesses to spend more and more money are attracting attention. The hint came from an economic theory advocated about 90 years ago.

At that time, it was in a recession due to the Great Depression. Economist Silvio Gesell has proposed “stamp banknotes” as a way to break the vicious cycle of people not spending money and the economy stagnating.

“Stamp banknotes,” which Gezel is said to have called “rusty banknotes,” were born from the idea of setting an expiration date for money. When the deadline comes, the money will be invalid unless you buy a new stamp from the issuer such as the country and put it on. Even if they save money, they lose money, so people are willing to spend it before the deadline.

This idea, which was not widely used in the world at that time due to the complicated procedure, is now being revived with the latest technology. It is the local currency of Traunstein in southern Germany, “Chiemgauer”.

Chiemgauer users exchange one-on-one with the euro and deposit it as data in an account dedicated to negative interest rates. Currently there are 4,000 users. Why do users bother to spend this money, which automatically loses 6% a year if it is not used because it has a negative interest rate?

In fact, this Chiemgauer has another big feature. 3% of the exchanged amount will be added, and users can donate the entire amount to their favorite organizations and facilities such as churches. For this reason, an increasing number of people agree that it will contribute to society.

Stores and companies that receive Chiemgauer also try to use it by the deadline, resulting in a wider circulation of money. Many have stopped choosing to save money and are willing to spend it. This is a hint for a stagnant economy.

◯”Time” also becomes a currency Advances in technology create new currencies.

Another issue left over money is the problem of credit deterioration. In recent years, the credit of money has been shaken one after another, such as the economic crisis in Greece and the Asian currency crisis, including Venezuela.

How should the world overcome this problem? In the past, it was “gold” that supported the “credit” that was indispensable for money. Gold is a rare substance that is said to be only a dice with a side of 21m when all the things that exist on the earth are collected in one place. That “rareness” became credit, and convertible banknotes that could be exchanged for gold supported the world economy. This is the so-called “gold standard”.

However, as the economy expanded, the country switched to banknotes that could be printed indefinitely, and as a result, the nation supported its credit.

And the quest to create a whole new credibility is now underway. It is a “virtual currency” that is a digital currency exchanged on the Internet. Some may be worried because cryptocurrencies have been stolen in huge numbers all over the world. However, the idea that is the basis of that “credibility” is said to be very epoch-making.

The current money is managed by the central banks of each country. Since the amount is adjusted while watching the economic situation, credit will fluctuate greatly depending on the policy.

On the other hand, virtual currency (in the case of Bitcoin) does not have an administrator like a central bank, and the amount of issuance is predetermined by the program, and it is a rule that can not be increased arbitrarily. Since it is a unique currency without the concept of borders, its value is not affected by the bankruptcy of large companies, the financial crisis, foreign exchange, trade friction, etc.

Since the transaction record of virtual currency is shared by all users on the Internet, even if there is some fraud, the correct record can be maintained on countless other PCs. With this mechanism, technology supports credit.

Chakraborti points out that while there are still many challenges to cryptocurrencies in the early days, there is potential for the desired credit.

“People realized that the nation wouldn’t protect them from the economic crisis, so they decided not to rely on the nation and to rely on technology to solve the problem. The symbol is cryptocurrency.” Professor Chakraborti)

Furthermore, a time currency called “time coin” was newly created from the idea that turning money does not bring happiness and affluence.

“Time currency” aims at an economy that is completely different from conventional currencies. The biggest feature is that everyone has equal time as a currency.

How do you use time coins? For example, suppose the president of a large company in a country wants to know the thoughts of young people abroad. At this time, the president can use time coins to listen directly to young people overseas for an hour. In the new economic zone that time currency is aiming for, it will be possible to interact with such people who cannot normally connect and to experience things that cannot be measured with money, across national borders and positions.

The number of users of time currency continues to expand, and it is now used by more than 30,000 people in 110 countries.

Gabriele Donati, the founder of Timecoin, believes that the emergence of new money will change the future of capitalism.

“Bill Gates and street sleepers have the same 24 hours in their wallets. That perspective is the point of time currency. In the traditional economy of turning money, technology has not been seen. With the progress of, it has become possible to convert it into currency. “(Mr. Donati)

What will happen to the money in the future? Professor Emeritus Shoals predicts the arrival of a new era of money in which newly born currencies challenge the evolving traditional currencies.

“Traditional currencies will accelerate transactions further by becoming cashless. Behind the scenes, data on the users will be collected and analyzed. Attempts to turn the economy will go to the limit. At the same time. , Currencies with completely different values that connect individuals are born one after another. Will new currencies become huge swells? We are at the beginning of a new era of money. Traditional money is capitalism. Will it continue to dominate, or will new money emerge? I’m looking forward to it. “(Professor Emeritus Shoals)

 

コメント

タイトルとURLをコピーしました