Brett Social Banking June 2017 · Change the power dynamics of who controls the ledgers(E.g....
78
@suitpossum [email protected]
Transcript of Brett Social Banking June 2017 · Change the power dynamics of who controls the ledgers(E.g....
What is the ‘future of money’?
Flavours of Futurism
Descriptive accounts of what future is likely to be
(‘Scientific’ or ‘Academic’)
Flavours of Futurism
Descriptive accounts of what future is likely to be
(‘Scientific’ or ‘Academic’)
Normative accounts of how the future should be
(Political, Ideological)
Flavours of Futurism
Descriptive accounts of what future is likely to be
(‘Scientific’ or ‘Academic’)
Normative accounts of how the future should be
(Political, Ideological)
Normative political accounts disguised as descriptive
scientific accounts
(e.g. ‘Blockchain will wipe out the banking industry’)
Linear (or exponential) Futurism
Dystopian past – Pinnacle of present – Utopian future
Utopian past – Precipice of present – Dystopian future
Holistic Futurism
Increasing the wideness of frame
Appreciation of trade-offs
Speed will increase vs. confusion will increase
Convenience will increase vs. resilience will decrease
Automation increases vs. scaled bureaucracies increase
Production of value
Humans use labour (physical, mental, emotional), ecological resources, technology & communication-management to produce value
On-the-spot exchange of a specific good or service (value) for an abstract credit/claim/token
granting access to a pool of existing or potential future goods or services produced by others
Monetary exchange
Capitalist production<private property systems>
<money systems><markets: land, resources, tech, labour>
<+finance>
Money is not a store of value. It is a transferable
claim upon value
Bearer instrument – physical representation of
monetary claims
‘Getting rich’ means accumulating the notes
Literally moves around (Needs physical
transportation)
Ledger system – written representation of monetary claims
‘Getting rich’ means accumulating a high score on an account
Ledger just needs secure communication system and trusted
intermediaries
Two implementations of a money system:
Bearer instrument vs. ledger system
Elements of a ledger money system
1) Database: Thing being recorded into
Elements of a ledger money system
1) Database: Thing being recorded into2) Accounts: Spaces on the database allotted to particular people
Elements of a ledger money system
1) Database: Thing being recorded into2) Accounts: Spaces on the database allotted to particular people
3) Recording technology: The thing used to do the recording
Elements of a ledger money system
1) Database: Thing being recorded into2) Accounts: Spaces on the database allotted to particular people
3) Recording technology: The thing used to do the recording4) Recording agent: The agent who uses the recording tech to
write entries associated with the accounts
Elements of a ledger money system
1) Database: Thing being recorded into2) Accounts: Spaces on the database allotted to particular people
3) Recording technology: The thing used to do the recording4) Recording agent: The agent who uses the recording tech to
write entries associated with the accounts5) A communications system, to talk to the agent
Digital ledger money: The ‘ledger book’
010001000110100101100111011010010111010001101001
011100110110000101110100011010010110111101101110
Digital ledger money: The recording technology
Digital ledger money: The recording agent
Digital ledger money: The communications system
Account
holder
Reserves
1750
1250
Total 3000
Acc IOU
BAR123 (250)
BAR456 (1500)
BAR789 (10000)
Total (11750)
Acc IOU
HSB123 (1000)
HSB456 (250)
HSB789 (7000)
Total (8250)
Loan
asset
UO-ME
BAR789 11000
Total 11000
Loan
asset
UO-ME
HSB789 7700
Total 7700
The Future… according to Fintech
Fintech 1: Automate the user-experience layer
Fintech 1: Automate the user-experience layer
Fintech 1: Automate the user-experience layer
… or add new layers on top
BRANCH >>> HYBRID BRANCH
TO NO BRANCH AT ALL?
The drive to replace service with self-service
Fintech 2: Automate financial professionals
Fintech as outsourced bank R&D
Fintech 3: Fuse it all with IoT (non-human agents)
A quick detour…
Capitalist production<private property systems>
<money systems><markets: land, resources, tech, labour>
<+finance>
Robot components‘Senses’: Sensors
‘Body’: Mechanical assemblage‘Mind’: Digital algorithm
What do we mean by ‘digital’
“Digital describes electronic technology that generates,
stores, and processes data in terms of two states: positive
and non-positive. Positive is expressed or represented by
the number 1 and non-positive by the number 0”
(source: http://whatis.techtarget.com/definition/digital)
Components of digital systems: Phase 1
Components of digital systems: Phase 2
Components of digital systems: Phase 3
Components of digital systems: Phase 4
AlgoRobotic SystemsInputs:
Sensor Networks
(‘Senses’)
‘Mind’
Datacentres / Algorithms
Outputs:
Output devices
Actuators
(‘Body’)
The INTERNET OF FULLY
AUTOMATED CAPITALISM
Automation of labour
+
Automation of management
+
Automation of exchange
Why companies invest in digital tech
Expand markets
Automate co-ordination, control, management
(reduce production costs / boost scale & productivity)
Attract customers with new products…(ideally by
convincing them to replace service with self-service)
Monitor customers, build data on them, influence them
Sever the management function from workers
Beyond centralised automationBlockchain technology
Private blockchains: Reducing the vision to efficiency &
cost-saving (profit optimisation)
A side note on hacker culture & the drive to re-decentralise
or re-humanise digital infrastructures
What does decentralisation actually mean?
Some alternative visions for changing the
monetary system
Some alternative visions for changing the
monetary system
Change the power dynamics of who controls the ledgers (E.g.
cryptocurrency)
Some alternative visions for changing the
monetary system
Change the power dynamics of who controls the ledgers (E.g.
cryptocurrency)
Change who gets to issue it (e.g. Mutual credit)
Some alternative visions for changing the
monetary system
Change the power dynamics of who controls the ledgers (E.g.
cryptocurrency)
Change who gets to issue it (e.g. Mutual credit)
Change what it is redeemable for (E.g. Local currencies)
Some alternative visions for changing the
monetary system
Change the power dynamics of who controls the ledgers (E.g.
cryptocurrency)
Change who gets to issue it (e.g. Mutual credit)
Change what it is redeemable for (E.g. Local currencies)
Find ways to bypass it entirely (e.g. Gift economy)
Some alternative visions for changing the
monetary system
Change the power dynamics of who controls the ledgers (E.g.
cryptocurrency)
Change who gets to issue it (e.g. Mutual credit)
Change what it is redeemable for (E.g. Local currencies)
Find ways to bypass it entirely (e.g. Gift economy)
Alter the financial institutions that dominate the money
system (e.g. Monetary reform & alternative banking)
DECENTRALISED LEDGER COMMUNITY MONEY ISSUANCE REDEEMABILITY RESTRICTIONS
?
Hybridising
