Is there a limit in how fast we will be able to transfer money?

February 23, 2017 no comments Posted in Currency & exchange rates

We will build all this article from a story, the story of Ashley and Bernardo. Ashley is living in the US, close to San Francisco, or what will become San Francisco. Bernado is living in Spain, somewhere next to Madrid and the weather is great.

Bernado needs to send money overseas to Ashley, and he needs her to receive it as fast as possible. If Ashley doesn’t receive the money she might starve.

1000 B.C.

At this time, Bernardo would have had no choice, trying to cross the ocean himself on a boat with the food or something to give to the indians in return. He might have fallen at the end of the world and we can be sure Ashley would never have received it.

1600

Now we know how to go by boat to Ashley, but Bernardo would not need to get on the boat to transfer the money. He would trust someone and in a hawala like movement, give the money to someone that would give it to Ashley. The money would need to be gold as cross currency between national currency at that time didn’t have great rates at all. You could lose up to 50%. The transfer would still needs 2 months minimum.

1800

A revolution was done, the telegram and Western Union was one of the first one to take advantage of it. Western union could wire an IOU within days !

2000

A bit better than telegram, but no revolution out of it, we are still trading IOU, and it still takes time

2009

Here comes the great revolution, thanks to internet of course, but not only. This revolution has a name : Blockchain. The blockchain actually allows people to transfer money online without trading an IOU and this is the real difference. Within 1 hour, the money from an account belongs to another account. The technology is still in it’s infancy but the promises are huge !

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What will be the currency 1000 years from now

February 5, 2017 no comments Posted in Currency & exchange rates

How can someone plan so far ahead? I’m already lost when we are talking about what the future will be like in 30 years. But currency is something that exist since a really long time, didn’t change so much and we can basically predict how it will become.

First thing first, what should look like the best currency, let’s have this ideological view about it before getting into this.

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What could be the best currency

The best currency in my opinion is a currency that is private, auditable, fast, cheap to transfer, light and allows you to pay anyone everywhere.

Private : I don’t want anybody to be able to know what I bought, it’s my privacy.

Auditable : I don’t want to hide what I’m buying from 2 entities. The tax responsible agency and the security agency.

Fast : I want to be able to transfer from anywhere to anywhere instantaneously

Cheap : Sending should be free, you don’t need to pay for a transfer, neither when you exchange the currency against another, or a really small amount.

Light : Gold is a good example of something that is not easy to carry.

Allows you to pay anyone anywhere : If nobody accepts this currency, I don’t want it.

This triggers a new question, can we automatically exchange the currency when you pay? Can you force someone to accept this money? Can we create a wallet where you can store an exchange most currencies?

Cultural currency

This is a new concept I wanted to think about, and I think about it while I’m typing so let’s figure out if this can work. Hum… A cultural currency could be distributed to every citizen for free every week and you can either use it or lose it. It allows you to buy art, visit museum and attends many cultural events.

Time currency

If we work to have be able to afford free time, then a time currency would be that when you work you earn enough money to enjoy. “You just earned 4 hours of free time today sir”; Great, let’s do something fun with it, or exchange it at some great or best exchange rate while transferring through a website that can compare, choose and transfer. Or any idea like this.