1 X bitcoin bitcoin =


30 September 2020

Programmable money: How crypto tokens could change our entire experience of value transfer

Programmable money: How crypto tokens could change our entire experience of value transfer

smart summary beta

It could accelerate the transition to programmable money in e-commerce.

On the backend, an auditor could receive automated reports about who is holding the tokens and where they are being used.

And even when aid arrives, recipients are sometimes robbed — another worry a programmable token could mitigate.).

Governments could use programmable tokens to enforce economic embargoes.

A token could be programmed so that its value could be redeemed anywhere in the world — but not in North Korea or Iran, for example.

citizen, if programmable money had been an option, Kaj Burchardi, Managing Director & Partner of Platinion (Amsterdam), part of the Boston Consulting Group, told Magazine.

While many forms of such money exist today — most cryptocurrencies are programmable to a higher or lesser degree — much of the discussion around CBDCs involves digital currencies —notmoneywith conditions.

you and I will not be able to write code attached directly to our money, dictating its behavior and movements.” While the vision of fully programmable money is closer to reality than ever before, “it will still be some time before governments and central banks go all the way that the private sector has, with digital currencies and decentralized finance (DeFi).”.

Boston Consulting Group’s Burchardi told us that roughly 80% of the world’s central banks are looking into a digital currency, including some who are exploring CBDC 2.0, — i.e., digital currencies connected to smart contracts?

“[U]nlike with traditional digital money – the new forms of cryptomoney feature a significant technological innovation: they can be connected to so-called “smart contracts,”notedthe Association of German Banks (AGB) in a blog.

Germany’s private banks regard programmable digital money “as an innovation with great potential that can be a key component in the next stage of the evolution of digitalization,” said the group.

Gross told us that while programmable CBDCs were unlikely in the U.S.

Without too much trouble they could receive digital currency on their phones, and bypass the banking system entirely.   .

A programmable token could strengthen controls around aid payments, tracking and tracing flows on a national level, using link analysis to uncover fraud and corruption.

Programmable money could enable global financial transactions that preserve compliance with local laws and regulations, suggested Rosenoer: “Assume that you have a tokenized asset that you want to sell.

“The future of money is programmable,”saidNeha Narula, director of the MIT Media Lab Digital Currency Initiative.

They can run large-scale data analysis and provide me with a cryptographic proof that shows they’re only using my data in a way that we agreed.

What hurdles still have to be overcome before programmable money becomes an everyday reality.

Freddy Zwanzger, co-founder and chief data officer at Anyblock Analytics GmbH, told us that people need to become better educated in the handling of digital currencies and their usefulness as alternatives to fiat currencies.

Gross said there was still a general lack of understanding about the potential benefits of programmable tokens, as well as insufficient collaboration between public institutions — e.g., central banks and governments — and the industrial sector that will be a main user of programmable tokens.

Tenner added that a regulated programmable Euro issued by private banks could maybe coexist with other programmable e-money like Libra within the next five years

“It seems to me that programmable tokens have yet to demonstrate that they can feasibly achieve outcomes that are superior to or cheaper than the outcomes that can be achieved from existing technologies

But they remind us that when programmable money is adopted at scale — on the governmental level — sweeping societal/economic changes could follow:

Goto Full Article

bitcoin bitcoin price



Live Average


News Article Sentiment


Score (-0.1)

Article Metadata


Market data feeds provided by
bitsmart 2018