The Future of Money

P7　—　Will Cash Disappear?

Cards, electronic money, crypto-assets, and central bank digital currencies. We will examine who bears the debt and what remains unchanged behind these new methods of payment.

Supervised by: Mitsuru Hayama　／　Reading time (main text): About 10 min (5,166 characters of text at 500 chars/min; exercises and readings not included)　／　Beyond the text: 6 exercises · 2 coins · 3 readings

What this course teaches you to do

• Be able to distinguish between cash in a wallet, bank deposits, cards, electronic money, and crypto-assets based on who holds the liability.
• Be able to interpret a figure for "a decrease in cash" by specifying whether it refers to the number of transactions or the total amount, and what the denominator is.
• Be able to state where one's money is located in cases of prepayment and post-payment.
• Be able to distinguish between what various countries have and have not decided regarding central bank digital currencies.

Lessons (8)

1. Three People at the Register — Classifying Payment Methods by "Whose Liability It Is"There are three ways to pay: settle on the spot, pay later, or pay in advance. First, state whose liability it is.
2. Is cash declining? — Check the denominator of the numbers.By number of transactions or by value? What is the denominator? Do not compare a year when the yardstick changed with the previous year.
3. Where is the money you paid in advance? — Electronic money and certificates of depositThe money you paid in advance is in the hands of the issuer. Only the amount stipulated by law will be returned.
4. Money without an issuer — How Bitcoin worksThere is no issuer. Therefore, it is not anyone's liability, and there is no one to file a claim with if problems arise.
5. A Number Tied to the Dollar — Whose Liability Are Stablecoins?Stablecoins are a liability of the issuer. Their backing is verified through disclosure, and they are not recorded on the central bank's books.
6. Central Bank Digital Currency — What has been decided, and what has not.Central bank digital currencies are in preparation in many countries, but none have yet decided on issuance. It is important to distinguish between what has been decided and what has not.
7. An Introduction to AI and Finance — What Will Get Faster, and What Will RemainAI speeds up the work of finding patterns. Bias, dependence, and herding are described in the same report as new risks.
8. What does not change — Five questions to ask before useForms change. The questions do not. Whose liability is it? Is it settled in central bank money? Is it pre-paid or post-paid? Is it reversible? Who is the counterparty?

Readings (3)

• From reconstruction to the palm of the hand　Japan　from 2024　the register and the offering box
  Section 2. 42.8% and 20% of nominal GDP. A scene where the reduced cash and the remaining cash are measured by different figures.
• The digital shore　United States　2009　Upon the internet
  Section 4. The price of currency not belonging to a state continues to be quoted in dollars. How did trade routes position money without an issuer?
• The island's choice　Britain　the present　A street corner where cash is vanishing
  Section 6. At the end of a 1200-year trade route, an examination of the intangible pound. The conclusion is that what remained were the name and credit.

Assessment

6 exercises in this course (4 check, 0 compare, 2 written). Progress is recorded by self-assessment.