Alex Nikolov and I have worked together since 2012 and in the last 5 years have focused particularly on money. This article, like many of the papers we’ve co-authored, is the product of Alex’s incisive and innovative thinking and approach:
Podcast: The Future of Money (audio 4 minutes 14 seconds)
Transcript:
Clive and I have long argued that everyone is a loser in the money-based political economy, where we are made to be both the perpetrators and the victims of the violence inherent in the money methodology. This paradox makes change virtually impossible and painfully slow—because you cannot revolt against yourself.Yet powerful forces are nonetheless driving significant change—because this change is structural rather than ideological. Of course, ideology is still employed in attempts to control this transformation, through mechanisms such as central bank digital currencies (CBDCs) and various forms of “digital gold,” like Bitcoin. However, these still rely on the same foundational money methodology as the current system and are likely to reproduce the same outcomes.
This highlights the urgent need to understand and explore the nature of modern money, its underlying methodology, and its true function. It is equally important to grasp what is driving the current structural transformation.
We may begin by examining the driving force behind this shift. We believe it is knowledge-driven, originating with the advent of mass-produced electronic circuitry. This development enabled the creation of tools and the deployment of methods that allow us to organize at scale, share problems socially, and disseminate discovered solutions. These capabilities led to the creation of the Internet, the rise of open-source development for operating systems and software, and the emergence of platforms like YouTube and Google that allow us to publish and search for knowledge. Additionally, platforms such as Skype and LinkedIn have enabled us to maintain connections across vast distances.
All of this leads us to perhaps the most significant question: What is the future of money?
To understand this future, we must first examine and agree on the core functions of money—and ask ourselves whether the current system truly “works” for us.
We propose that the current monetary methodology was adopted roughly 3,000 years ago, at a point when humanity had reached its limits in managing the sustainability of relationships with “the other”—those distant from us in geography, language, or beliefs. For those within our immediate circles—family, friends, and closely aligned organizations—money was, and often still is, unnecessary. In such close-knit relationships, trust and shared purpose often suffice.
The question, then, becomes: What’s next in our relationship with money? We might begin to answer this by asking: Does money truly serve our needs? And is there a better way to meet life’s necessities?
For some, the current monetary system works reasonably well—perhaps even advantageously. But for many, this is not the case. We argue that today’s system fosters harmful incentives: it encourages short-term thinking, devalues use over exchange, and acts as a mechanism of control—without offering the insight or transparency required for informed decision-making. In this way, it becomes a system susceptible to exploitation.
This makes it clear: if we were to design a new form of money today—with a new methodology—it would need to retain useful aspects of traditional exchange systems while also embracing our newfound capacity to organize across long distances in open, decentralized ways. Such a system would allow us to collaborate and solve problems without the need for pre-existing tokens of value, and without being distorted by perverse incentives or unnecessary control.
This shift could manifest in various ways, depending on the individual. For one person, it might involve publishing content on YouTube and earning income through Google’s monetization system. For another, it might mean investing in unicorn startups or AI ventures—although this path is increasingly seen as risky and uncertain. Alternatively, we might choose to use our collective intelligence and technological capacity to develop open, decentralized solutions that serve everyone—and in doing so, align ourselves with the prevailing momentum of structural change.
The answer will differ for each person. But taken together, these diverse paths may begin to form a new, common trajectory.
Further references:
The Emergence of a New Organisational Paradigm and its Requirements
The Money Paradox
DACSO Explained
Reform Proposals in the Monetary System for Attaining Global Economic Stability