Professor of Political Economy: Alternative Money is the Future

nnnnLorenzo Fioramonti is a professor of political economics at the University of Pretoria, president of Africa’s first Jean Monnet program and president of the European Association for Research in Sub-Saharan Africa. He believes that the use of Bitcoin, currency coins and other block-based chain of encrypted currency to its central characteristics to bring a very different advantage, breaking the many economic and political constraints, to bring people a fair chance of survival. His research also shows that the combination of different types of currencies will make the economy more stable and more equal opportunities.n
nTranslation: Annie_XunnWhen I started teaching in 2012, I decided how the currency would affect the social order. My students found that the emerging world of encrypted money was very attractive, and I would like to elaborate on the key features that it brings to future currencies.n
nSome colleagues criticized my teaching. Accusing me of indirectly encouraging students to invest in dark and sinful financial triads in their eyes. But I just let young people understand the rapid evolution of this complex phenomenon, and that it will greatly affect the global economic power distribution.n
nBehind most of the encrypted currency is a simple block-chain technology, which is mounted on multiple computers and can record all transactions in the network at point-to-point.n
nThus bringing a transparent and open source of capital flow register, so that the bank’s intermediary services lost meaning. So it challenged only traditional planning that could support the traditional beliefs of money.n
nWellbeing Economy: Success in a World Without Growth is what I have, in which I explain that the monetary system has undergone an unprecedented shift from a centrally centralized transition to a centralized network.n
nThe traditional currency is managed by the state and the bank, and the user is at the receiving end of the monetary policy decision. On the contrary, most of the alternative currencies are point-to-point, that is, the user’s own management of the currency, no intermediary. Some of which are even around the world with digital technology, while others are limited to specific areas.n
nFor example, the world’s leading point-to-point currency BitCoin market value of more than 40 billion US dollars, 2009 to buy a dollar BitCoin is now worth about 25 million US dollars. Currently a BitCoin value of two ounces of gold. Other stars include the ether square, the Levin coins and the torpedo.n
nThe plight of the wind swept the globen
nMany of these currencies are still fluctuating in the short term, falling more than 10% per week. But the long-term trend is amazing. The country is also gearing up.n
nIn April 2017, Japan recognized BitCoin as a legal payment for the retail market; last year the Russian government challenged the digital currency after a big turning point, President Vladimir Putin met with the developers, promised to recognize the encrypted currency in 2018.n
nIn June 2017, the People’s Bank of China initially froze BitCoin’s offer service, and then reopened the service to bring the money to a new level. The encrypted currency payment and value storage were also popular in the United States.n
nThe Australian government will soon relax the innovation and entrepreneurship of digital money companies, so that traders and investors exempt from goods and services tax.n
nObviously in the near future, the encrypted currency will become a common way of dealing with a large number of transactions, from online shopping to regional supermarkets.n
nDeveloping countries move forward by leaps and boundsn
nDeveloping economies are also embracing encrypted currencies. BitCoin became the main parallel currency of Venezuela. Providing opportunities for millions of citizens to trade and make a living, including the purchase of food and other necessities in areas where money is worthless. It also allows people to purchase goods from overseas, to overcome the increasingly stringent capital controls.n
nEast African innovators invented an encrypted currency system that supports cross-border transactions, with BitPesa as a typical example.n
nThe encrypted currency is increasingly popular in South Africa. Nigerian traders and activists recognize that this new currency has brought economic democracy. The disappointment of the people of Nigeria for the traditional currency is to improve the status of this encrypted currency.n
nMy colleague, Zimbabwe BitFinance founder Verengai Mabika, introduced the collapse of his official financial system in the country to increase the attractiveness of BitCoin. Especially to promote the domestic economy as a pillar of the online payment and remittance break the bank’s containment.n
nVerengai said that more and more Zimbabweans began to use the encrypted currency for the savings mechanism (37% of Bitfinance customers were using). This is in 2008 after a large number of malicious inflation loss savings, the domestic banks have also closed down.n
nTo the center and local economic developmentn
nThe centralization of money is at the center of this trend, and its influence may penetrate other areas. For example, the ether is a smart contract platform, complete point-to-point property transactions. FairCoin as a global fair trade network and social economy and the advantages of the currency.n
nThe encrypted currency is just the tip of the iceberg. Recently estimated that the world more than 6,000 kinds of supplementary currency, the traditional monetary system more than 50 times. Many of which are user-controlled interest-free currencies. Trading these currencies is not profitable.n
nThis new world makes hoarding money meaningless. Because its value is not accumulated, but the transaction.n
nThe scope is limited by specific areas or types of transactions (such as personal care, regional trade, sustainable transport). This creates incentives to support regional economic development and community-recognized forms of transactions.n
nI have studied in Germany, a local currency network Regiogeld has been popular in the country, has become one of the world’s largest local currency system, supporting small businesses and communities.n
nIn the near future, we will have different purposes and characteristics of the currency, so that the economy more resilient to shock, to support more fair and sustainable development, allowing users to control the initiative, strengthen the regional economic development.n
nMy research shows that the combination of regional, national and local currencies is also the best choice for the EU, the unsustainable single euro system, and the best choice for any regional integration in Africa and other continents.n

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