Over the last few years I’ve done a fair bit of work with the International Finance Corporation, particularly through the SME Finance Forum, which brings banks together with fintech companies to work to lower the cost of bringing SMEs into the banking system. That’s a good thing because it gives the SMEs access to growth capital, which is by far the leading producer of jobs in both developed and developing economies.
For their November letter, the SME Finance Forum asked me to produce a tight summary of my research in the coming collision of digital currencies and smartphones:
Pressure from four billion smartphone owners will force one, then all state currencies onto smartphones. Distributed ledgers prove this can be done safely, securely, and with a high degree of confidence that central banks can retain control of the money supply. As can be seen from the example of M-Pesa in Kenya, money velocity through the economy would be significantly accelerated in every nation that adopts a digital form of their currency.