Who will make money

A discussion about the future of digital currency

David GW Birch

Russian Fintech Association (Moscow August 2017)

wwwdgwbirchcom

dgwbirch

V3

David GW Birchauthor advisor and commentator

Global top 15 favourite sources of business information (Wired Magazine)

London FinTech Top 10 most influential commentators (City AM)

Top 20 Fintech Influencer (JAX London)

Top five Leader in IDentity (Rise)

Top 10 Twitter account followed by innovators alongside Bill Gates and Richard Branson (PR Daily)

Top 10 most influential voices in banking (Financial Brand)

Top 50 blockchain insider (Richtopia)

Europersquos most influential commentator on emerging payments (Total Payments)

2

Th

is is

INS

AN

E

Available at all good bookshopshellip

bull gt

3

Agenda

What is digital currency

Who might issue digital currency

Who do I think will issue digital

currency

4

Currency and Digital CurrencyLetrsquos agree on the terminology and then we can move on

5

Dumb Money and Smart Money

6

Virtual Currency

7

Digital Currency

Strictly speaking a currency board not a currency

8

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Available at all good bookshopshellip

bull gt

3

Agenda

What is digital currency

Who might issue digital currency

Who do I think will issue digital

currency

4

Currency and Digital CurrencyLetrsquos agree on the terminology and then we can move on

5

Dumb Money and Smart Money

6

Virtual Currency

7

Digital Currency

Strictly speaking a currency board not a currency

8

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Agenda

What is digital currency

Who might issue digital currency

Who do I think will issue digital

currency

4

Currency and Digital CurrencyLetrsquos agree on the terminology and then we can move on

5

Dumb Money and Smart Money

6

Virtual Currency

7

Digital Currency

Strictly speaking a currency board not a currency

8

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Currency and Digital CurrencyLetrsquos agree on the terminology and then we can move on

5

Dumb Money and Smart Money

6

Virtual Currency

7

Digital Currency

Strictly speaking a currency board not a currency

8

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Dumb Money and Smart Money

6

Virtual Currency

7

Digital Currency

Strictly speaking a currency board not a currency

8

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Virtual Currency

7

Digital Currency

Strictly speaking a currency board not a currency

8

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Digital Currency

Strictly speaking a currency board not a currency

8

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Cryptocurrency

Why would a central bank issue a currency that they cannot control

9

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Taxonomy Strawman

10

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Money CreatorsFive different ideas about the future of currency

11

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Issuers the 5Cs

12

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Central Bank

There are obvious +ve GDP benefits to a digital currency

13

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Commercial Bank

Swindon City of the Future

14

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Company

M-PESA is a currency board too

15

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Cryptography

Private and public keys as ldquodigital goldrdquo

16

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Community

Reduce internal transaction costs increase external transactions costs

17

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Whatrsquos the StoryA future narrative

18

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

BritCoin or BritPESA

I look forward to a time when the successors to Bill Gates will have put the successors to Alan Greenspan out of business

Edward de Bono (1993)

19

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

Looking Forwards

The electronic money world looks much more like the neolithic world economy before the invention of money than it looks like the market as we have known it in the past few hundred years

Social anthropologistJack Weatherford

The Fiscal Frontier (1998)

20

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo

in the future everyone will be famous for fifteen megabytes

engage dgwbirch limited

post 1 Armadale Road Woking Surrey GU21 3LB UK

call +44 7850 863168

contact maildgwbirchcom

visit wwwdgwbirchcom

follow dgwbirch

comment blogdgwbirchcom

connect httpswwwlinkedincomindgwbirch

order amazoncouk ldquoBefore Babylon Beyond Bitcoinrdquo