Predictions of the future payment system
I make these three predictions of the future of payment systems:
Firstly, no future payment system will be built on printed paper and metal.
Secondly, no future payment system will be built on transactions over a large number of synchronizing server (as the current payment systems are).
Thirdly, payments will likely be a no fee (or a very small fee) business, instead it will be a big data business.
The likelihood of that government currencies will be transacted over a specially developed version of Blockchain or similar is therefore high. I believe especially the idea of Fedcoins, a cryptocurrency issued by the Federal Reserve and replacing physical bills and coins, isn't a too big revolution. Sooner or later bills and coins need to be replaced and I don’t see payments with physical cash will exist at all in the not too distant future. I live in Sweden and there are soon no bank office storing coins and bills here any longer. The only place to get physical cash is in the ATM (and they get fewer and fewer).
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9yOf all the three predictions, the third one is most disruptive Magnus Lind
Thanks for the link, Martin.
In my opinion the blockchain is a great technology for contracts but not that much for payments/money. I also do not see why a currency created by a central bank would be based on a decentralized system. As for the rest of your article: If we do not experience some external shock slowing down technological advance I agree - also for rather backward central and south europe.
Business Analyst presso NTT DATA Italia S.p.A.
9yThe global trend is the one properly described in the article. But I think that situation, especially in the south of Europe, is presently a little bit different from the Sweden one (in particular regarding the coin disappearance)