The Evolution Of Finance

Crypto is generating change in the financial world but it is not the only thing going on as other "digital" advances put things forward.The evolution of crypto has shown that it has not served as a good means of exchange, nor as a good store of value, nor as a stable unit of account.Thus, the role that cryptoassets will play in the future system of money and finance will not be that exceptional and will not dominate other forces that are working in banking.But, things still have to be worked out: digital is the future, but how the digital system goes together must still be worked out.The traditional system, however, will play a major part in what the future is going to be.For several years, now, we have been wondering where the crypto-world was going to take us.We tried to be patient by arguing that, given time, the system would work itself out and we would then come to understand where things were going.Well, it seems as if "things" are moving far enough that we can get some picture of how this whole "digital" world is going to evolve.Cryptocurrencies were to give the world a cheap, safe means of exchange, one that could serve as a store of value and, consequently, as a unit of exchange.That has not been what has happened.We have found out that cryptocurrencies do not perform well as a medium of exchange.Serving as a means of exchange was the one key characteristic that would give cryptocurrencies a reason for existing, it wo...