One of the next biggest evolutions of money may be programmable money, which also has the potential to entirely disrupt any financial technology in development we have in place today. Programmable money is money that has constraints as it is real money which is represented in digital form and is also known as tokens.
The digital currency is tracked with the use of electronic ledgers, in most cases the most popular technology to do this with is Blcockhain as it enables transactional records to be publicly shared whilst remaining secure. The advantage of programmable money is that it delivers currencies, financial instruments and banks with a new utility and potential value in not billions but trillions of pounds.
The use of blockchain enables the use of programmable money. Crypto and blockchain platforms are optimized to move slowly and not break. This is a good fit for use cases which involve money. Programmable money has the means to solve many previous unsolved problems. This includes seizure-resistant stores of value.
Typically, cryptocurrencies are cryptographically secure, non-sovereign, seizure resistant digital assets. This means they can be transferred between countries for a small fee with no need to use a bank or an institution to do so. And so, programmable money will help solve these issues helping business work and flow quicker.
Programmable money will also offer privacy and anonymity. Private coins enable crypto equivalents to be used in a private banking ecosystem. Due to the nature of how secure and private crypto programmable tokens are, banks and insurance businesses will take advantage of these privacy preserving technologies.
Programmable money also offers the opportunity for financial services to use smart contracts. Smart contracts are software contracts. What this means is software codes can be used to help scrutinise assets, insurance, lending and escrow. Smart contracts will offer a platform that will more often than not have strong regional network effects due to their interaction with regulations and regional norms. For this reason they prove more attractive and useful.
Programmable money is the foundation of a new technology and is worth over multi-trillion pounds and the largest market size of cryptocurrencies to be able to gain from it. Programmable money tokens can earn a premium on their utility as non-sovereign stores of value. Companies and organisations which are butil on these tokens can transfer industries.
Investing in new concepts like programmable money requires an early stage technology mindset aligned with the use of specialised firms that have the knowledge. The technology driven nature of programmable money indicates that assets will need to be assessed via deep technology diligence. This includes meeting technical teams, running protocol nodes and auditing code bases. It also requires a lot of early-stage market analysis to see how well users are able to adopt networks and use them with their existing technology.
As time goes on the idea of programmable money is one which is being discussed more and more and in great lengths. Some critics have suggested that the Covid-19 pandemic is forcing a slow and gradual wave towards the notion of programmable money. The pandemic could, in fact, accelerate the transition to programmable money in e-commerce. Since the pandemic, there has been a spike on interest in the area. For this reason, many organizations and businesses are even giving programmable money a new look.
Programmable money could in fact enable global transactions that preserve compliance with local laws and regulations. Finding loopholes that allow business to do and carry out transactions in a safe manner could bring upon new investors from within the country and also foreign investors. Both of these types of investments can help boost a country's economy taking them from not very wealthy to affluent in a matter of years.
When considering changes to the way the world is run and the adoption of new technologies, it goes without saying that there are and will be some downfalls. Although most of the arguments